AvalonBay looking to sell stake in $1.2B Manhattan apartment portfolio

Jun.June 18, 2018 06:07 PM

Avalon Communities CEO Timothy J. Naughton and 1 Morningside Drive (Credit: Avalon Communities)

Mega-landlord AvalonBay Communities is hoping to offload half of a $1.2 billion Manhattan portfolio, as apartment prices continue to rise in the city.

The publicly-traded firm, one of the largest apartment owners in the U.S., is looking to sell seven buildings in areas including Morningside Heights and Chelsea, sources told Bloomberg. The company did not respond to a request for comment before deadline.

The move comes amid rising apartment prices in the city. In February, Douglas Elliman released data that showed the median price for a Manhattan apartment was $1.14 million last year, up 20 percent from $955,000 in 2008.

One of the buildings possibly up for sale is at 1 Morningside Drive. AvalonBay purchased the fee interest in the property for $95 million last year, making it one of the largest transactions in Upper Manhattan in 2017.

AvalonBay has been looking toward Brooklyn for expansion in the New York market, including a partnership with Muss Development on 1 Brooklyn Bay, a 28-story, 275,000-square-foot mixed-use project at 1524 Sheepshead Bay Road. The development, with a $73.5 million sellout, was rated the third most valuable Brooklyn condo filing accepted last year, according to an analysis by The Real Deal.

In the company’s April earnings call, Chief Operating Officer Sean Breslin said that of the company’s 18 markets, its holdings in New York performed among the weakest in the first quarter, Bloomberg reported. [Bloomberg] —David Jeans

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

(Credit: Getty Images)

Home showings allowed to resume by Cuomo administration

Stuart Elliott

Editor’s note: Is there shelter from the storm?

Stanley Chera (Credit: Patrick McMullan/Patrick McMullan via Getty Images)

Stanley Chera in coma with Covid-19

Governor Andrew Cuomo (Credit: Albin Lohr-Jones/Pacific Press/LightRocket via Getty Images)

Prevailing wage expansion included in budget deal

Dean & Deluca CEO Sorapoj Techakraisri and Midtown Equities founder Joseph Cayre (Credit: Craig Barritt/Getty Images, Facebook, iStock)

In Chapter 11 filing, Dean & DeLuca reveals it owes Midtown Equities $22M