AvalonBay Sells NY Community for $306M
Common areas and units are slated for a $9 million upgrade.
Affiliates of Harbor Group International and Azure Partners have acquired Avalon Green, a 617-unit garden-style community in Elmsford, N.Y., from AvalonBay Communities for $306 million.
The 94.6-acre property was built in three phases—1995, 2012 and 2015—by AvalonBay and features a mix of townhouses, apartment homes and stacked flats. HGI plans to spend $9.2 million to refresh amenities and common areas and modernize select interior units. A portion of the capital improvement program will focus on updating the interiors of units in Phase I and Phase II to include contemporary finishes.
HGI will take over as property manager of the asset, which will be rebranded Vista at Town Green.
Located in Westchester County, N.Y., residents have convenient commuter access to nearby employment centers including New York City, Rockland County, N.Y., and Fairfield County, Conn. The property is near Interstate 287 and the Saw Mill Parkway and is a 10-minute drive to the region’s Metro-North Commuter Railroad station, which provides direct service to Manhattan and Stamford, Conn. Several major corporations are located in Westchester County, including IBM, PepsiCo, Mastercard, Morgan Stanley and Regeneron.
Richard Litton, HGI president, said in a prepared statement Avalon Green is an attractive fit for HGI’s multifamily portfolio because of its strategic location between employment centers and transportation options. He said it also offers a significant value-add opportunity for HGI. Litton said he expects long-term demand fundamentals for the Westchester area to continue as renters seek housing in suburban markets.
Located at 500 Town Green Drive, the property was 98.5 percent occupied at the time of the sale. It has one-, two- and three-bedroom layouts along with several four-bedroom townhouses. Unit sizes range from 642 square feet to 1,798 for three-bedroom townhouses and 1,666 square feet for the four-bedroom townhouses, with an average size of 1,130 square feet. Rents range from $2,853 to $5,102, with an average rent of $3,468, according to Yardi Matrix data. There are washers and dryers in all units and fireplaces in select units. Most units have private patios or balconies. The property includes 167 units that are affordable along with select units in Phase III that are reserved for low-income households.
Direct access garages are available in select units. Detached garages are available for an additional $200 per month. Reserved parking garage spaces are available for $100 per month for Phase III units. Open parking is available for $10 per month for Phase I units.
Community amenities include two saltwater swimming pools, a clubhouse and resident lounge. The property also has a fitness center, business center and playground.
The Elmsford property is not the first transaction between HGI and Azure and AvalonBay in the region. In 2016, a joint venture between HGI and Azure acquired eaves Nanuet, a 504-unit Class A multifamily property on nearly 54 acres in nearby Rockland County, N.Y., for $147 million, according to Yardi Matrix. In November 2019, the joint venture sold the property, which had been renamed Peaks of Nanuet, to Mill Creek Residential for $180 million.
This month, HGI acquired Miro Brickell, a 372-unit Class A community in Miami from Clarion Partners for $184.5 million. It was HGI’s seventh acquisition in Miami-Dade County. In the spring, the company acquired a 133-unit community in western Miami for $50 million and Parkline, a luxury 816-unit community in downtown Miami.
AvalonBay has been an active developer and owner in the Westchester County area. In June 2019, AvalonBay began construction on Avalon Harrison, a $77 million, 143-unit apartment community in Harrison, N.Y., next to the Metro-North Commuter Railroad. AvalonBay had been selected by the Metropolitan Transportation Authority, which owns Metro-North and the property surrounding the train station, to develop the mixed-use project which also includes two parking garages and retail space.