AvalonBay closes $333m apartment fund

The AvalonBay Value Added Fund II will seek to acquire multifamily apartments in ‘high barrier-to-entry’ markets in the US.

Alexandria, Virginia-based AvalonBay Communities has closed its AvalonBay Value Added Fund II.

The private equity vehicle received $333 million (€230.3 million) in total commitments from four institutional investors, including a $150 million commitment from AvalonBay.

The fund, which has a purchasing power of approximately $950 million at leverage of up to 65 percent, will acquire and operate multifamily apartment communities in “high barrier-to-entry” US markets including the Northeast, Mid-Atlantic, Midwest, and West Coast regions.

AvalonBay Value Added Fund II has a term of ten years, plus two one-year extension options. 

As of June 30, 2008, the real estate investment trust AvalonBay Communities owned or held ownership interest in 180 US apartment communities comprising 51,118 apartment homes, including properties under construction and reconstruction.