NEW YORK, NY – AvalonBay Communities announced that it entered into an agreement to contribute its fee ownership of Avalon Morningside Park, Avalon Bowery Place I, and Avalon Bowery Place II, as well as its leasehold interest in Avalon West Chelsea and AVA High Line, to a newly formed joint venture with an institutional client of global real estate investment manager, Invesco Real Estate, in which AvalonBay will retain a 20% interest and act as the managing member and property manager for the assets.

These five communities contain 1,301 apartment homes and approximately 58,000 square feet of retail space in the borough of Manhattan in New York City. The transaction is based on an aggregate asset valuation of approximately $760 million and is expected to close before the end of 2018.

The newly formed joint venture plans to utilize secured financing at a loan to value ratio of approximately 50%.

AvalonBay intends to use the estimated net proceeds of approximately $460 million from this transaction for general corporate purposes, which may include the acquisition, development and redevelopment of apartment communities.

Commenting on the agreement, Matt Birenbaum, AvalonBay’s Chief Investment Officer said, “This transaction brings us closer to achieving our long-term geographic portfolio allocation goals and allows us to maintain our brand and operating presence in Manhattan, while monetizing a significant part of our investment in these assets.”

AvalonBay plans to update its full year 2018 Projected EPS, Projected FFO, Projected Core FFO and Established Communities’ revenue, operating expense and net operating income ranges to reflect the expected impacts of this transaction in its third quarter 2018 earnings release.

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CHEVY CHASE, MD – FCP announced the $71 million sale to The Reliant Group of three multifamily properties totaling 564 units, completing FCP’s disposition of assets in its “Apartments of St. Charles” portfolio. Over the past six months, FCP has sold the final 2,661 apartment units in the St. Charles portfolio for a combined $435.3 million.

The three communities sold this month were Bannister (208 units), Palmer (152 units) and Wakefield Terrace (204 units). All three communities are centrally located within the master plotted community and are walking distance to numerous amenities including strong neighborhood schools, grocer-anchored retail and community centers.

FCP bought the St. Charles portfolio in December 2009 as part of its American Community Properties Trust acquisition for $43.6 million plus the assumption of debt. FCP subsequently privatized APO. The initial APO buy included 3,200 multifamily units, 230,000 square feet of office space and more than 4,500 acres of land entitled for over 11,000 residential units and five million square feet of commercial development. Most assets were located in St. Charles, MDand Puerto Rico.

FCP is actively marketing its remaining St. Charles holdings, which include 66 acres of centrally-located commercial property approved for 180 active adult apartments, 208 market rate apartments and 160,000 square feet of neighborhood retail.

Over the past eight years, FCP repositioned and sold parts of the APO portfolio. Early dispositions included interests in a Florida homebuilder; land, apartment and office assets in Puerto Rico; and apartments in Baltimore and Richmond. In August 2017, FCP sold 2,400 acres of residential property entitled for more than 7,000 homes in St. Charles to Lennar Corporation for $53.7 million and, in April 2018, completed the $302 million sale of 11 St. Charles apartment communities totaling 1,731 units. In September 2018, FCP announced the $56 million sale of two apartment communities to Preservation Partners. Other material commercial land dispositions at St. Charles included the $13 million sale of land to CPV for the construction of its 725-megawatt natural gas-fueled power plant, the $9.2 million sale of land to Aggregate & Dirt Solutions and Clean Earth of Greater Washington for industrial recycling and the sale of the St. Charles office building for $5.0 million. 

As the primary real estate owner in St. Charles, MD, FCP acted as a positive steward for the community. FCP contributed land for 10 public schools, parks, libraries, public safety facilities and a minor league ball park. FCP-sponsored community events included free summer concerts, weekly farmers markets, job fairs, small business fairs, and annual college scholarships for local students. In 2012, FCP further committed to sustainable practices when it launched the Piney Reach Forest Management Initiative to protect healthy forested areas for future generations.

FCP extends its appreciation to Mike Muldowney, Michael Rudolph and the other members of the CBRE Mid-Atlantic Multifamily Investment Sales and Debt and Structured Finance teams as well as Jeff Kunitz and Alex Medeiros of CBRE’s Affordable Housing Investment Sales team for handling the marketing, sale, and financing of the transaction, and to KETTLER Management for playing a vital role in the repositioning of the multifamily portfolio.

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LOS ANGELES, CA – Institutional Property Advisors (IPA), a division of Marcus & Millichap announced the sale of Carabella at Warner Center, a 224-unit multifamily asset in the Warner Center/Woodland Hills area of Los Angeles.

“Warner Center’s population has grown 11.6 percent, twice that of Los Angeles County and at the fastest rate of any submarket in the San Fernando Valley. People are increasingly attracted to Warner Center because of its flourishing job market, expanding downtown and proximity to world-class amenities,” said Greg Harris, an IPA executive director.

“The area’s submarket fundamentals include average annual household income of $128,746,” added Ron Harris, IPA executive director.

Greg Harris, Ron Harris, and IPA senior directors Kevin Green and Joseph Grabiec represented the seller, Fairfield Carabella LLC, represented by Fairfield Residential, and procured the buyer, a private multifamily investment firm.

Carabella at Warner Center is a 218,610-net-rentable-square-foot asset built in 2009 on over five acres. The property is within two blocks of the Los Angeles Metro Orange Line’s Canoga station and is close to major freeways that provide access to many of the San Fernando Valley’s major employers and employment hubs in Burbank, Glendale, Ventura County, Santa Clarita Valley, Westside Los Angeles and Downtown Los Angeles.

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