AvalonBay Sells 268-Unit Apartment Community in Danbury, Conn., for $53M
- Feb 14, 2014
Fifteen years after developing Avalon Valley, a 268-unit apartment property in Danbury, Conn., AvalonBay Communities Inc. has sold the asset to Ergs Konover/Outlook Holdings L.L.C. for $53.3 million.
Occupying nearly 18 acres at 53 Sand Pit Road in Fairfield County, Avalon Valley first opened its doors to residents during the third quarter of 1999, having been developed by AvalonBay at a cost of $25.8 million. The property features 10 three-story buildings encompassing residential units, and a single three-story structure containing a clubhouse.
The apartment REIT relied on Institutional Property Advisors, a division of Marcus & Milichap Real Estate Investment Services, to orchestrate the sale.
The disposition of Avalon Valley dovetails with AvalonBay’s strategy for financing its current development endeavors. As of the close of 2013, the projected capital cost of the projects was $2.8 billion, $600 million of which was unfunded.
“Current conditions in the capital markets favor the use of unsecured debt and asset sales to fund our development pipeline,” the company notes in its fourth quarter 2013 management letter. “As part of our portfolio management efforts, we’ll look to sell assets that we believe will either underperform in the future or attract auction type pricing in a liquid transaction market for high quality, core assets.”