Arlington-based AvalonBay Communities Inc. expects to clear north of $450 million from the sale of a majority stake in five Manhattan apartment communities.
AvalonBay (NYSE: AVB) has formed a joint venture with an unnamed institutional client of Invesco Real Estate, through which the multifamily developer and manager will retain a 20 percent stake in Avalon Morningside Park, Avalon Bowery Place I and Avalon Bowery II, Avalon West Chelsea and AVA High Line. Those five properties combined have 1,301 units and 58,000 square feet of retail.
AvalonBay will act as managing member and property manager for the JV. It expects to net $460 million from the deal, which it plans to use general corporate purposes, including acquisition, development or redevelopment.
Matt Birenbaum, AvalonBay’s chief investment officer, said in a release that the deal “allows us to maintain our brand and operating presence in Manhattan, while monetizing a significant portion of our investment in these assets.”
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