AvalonBay is selling the New York community for $306 million
Affiliates of International port group and Azure Partners acquired Avalon Green, a 617-unit garden-style community in Elmsford, NY, 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, apartments and stacked apartments. HGI plans to spend $9.2 million to refresh amenities and common areas and upgrade some interior units. Part of the capital improvement program will focus on updating the interiors of Phase I and Phase II units to include contemporary finishes.
AvalonBay will continue to be the property manager of the asset, which will be rebranded Vista in Town Green.
Located in Westchester County, NY, residents have convenient access to nearby employment centers including New York, Rockland County, NY and Fairfield County, Conn. The property is close to Interstate 287 and the Saw Mill Parkway and is a 10-minute drive to the area’s Metro-North Commuter Railroad station, which provides direct service to Manhattan and Stamford, Connecticut. Several major corporations are located in Westchester County, including IBM, PepsiCo, Mastercard, Morgan Stanley, and Regeneron.
Richard Litton, president of HGI, said in a prepared statement that Avalon Green is an attractive choice for HGI’s multi-family portfolio due to its strategic location between employment centers and transportation options. He added that this also offered a significant value-added opportunity for HGI. Litton said he expects long-term demand fundamentals for the Westchester area to hold as tenants seek housing in suburban markets.
Located at 500 Town Green Drive, the property was 98.5% occupied at the time of the sale. It has one, two and three bedroom layouts as well as several four bedroom townhouses. Unit sizes range from 642 square feet to 1,798 square feet for three-bedroom townhouses and 1,666 square feet for 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 some units. Most units have private patios or balconies. The property includes 167 affordable units as well as some Phase III units reserved for low-income households.
Direct access garages are available in some units. Detached garages are available for an additional $200 per month. Reserved 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 facilities include two saltwater swimming pools, a clubhouse and residents’ lounge. The hotel 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 neighboring Rockland County, NY, 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. This was HGI’s seventh acquisition in Miami-Dade County. In the spring, the company acquired a 133-unit community in West Miami for $50 million and Parkline, an 816-unit luxury community in downtown Miami.
AvalonBay has been an active developer and owner in the Westchester County area. In June 2019, AvalonBay began construction of Avalon Harrison, a $77 million, 143-unit apartment community in Harrison, NY adjacent to the Metro-North commuter railroad. AvalonBay had been selected by the Metropolitan Transportation Authority, which owns Metro-North and the property surrounding the station, to develop the mixed-use project which also includes two parking lots and retail space.