RCA in the commercial property press:

AvalonBay and UDR Announce Strategic Trade of Assets

Bloomberg - Businessweek reports: AvalonBay Communities Inc and UDR Inc, the second- and third-largest publicly traded apartment REITs in the US, recently announced a mutual exchange of $237 million in properties--a move that will result in a significant rebalancing of both firms’ portfolios, better positioning them within a shifting marketplace. The deal will see Virginia-based AvalonBay hand over two apartment complexes and a parcel of land in the Boston metro, as well as one complex in San Francisco. In return, Colorado-based UDR will transfer multiple apartment properties in southern California and a check for $26 million to Avalon, which described the move as “…reallocating capital…into a current under-allocated region…”

In posting the news to its website, Bloomberg’s Businessweek magazine pointed out that the trade comes as the apartment sector mounts a full recovery. Citing data aggregated by Real Capital Analytics, “Demand for apartments in the U.S. is rising as the economy grows and the homeownership rate slumps. Sales of multifamily buildings climbed 96 percent to $33.7 billion in 2010 from a year earlier.”

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Posted by: Nina Turner

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