AvalonBay Communities Inc. closed on the sale of an 80% stake in five apartment communities in Manhattan, N.Y., for net proceeds of approximately $470 million.
The multifamily real estate investment trust contributed 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 established joint venture with an institutional client of global real estate investment manager Invesco Real Estate Ltd. The deal was based on a total asset valuation for the contributed assets of about $760 million.
AvalonBay will retain a 20% stake and serve as the managing member and property manager for the properties.
Cushman & Wakefield served as exclusive adviser to AvalonBay in this transaction.