8-KOther EventsExhibits & Filings

AVALONBAY COMMUNITIES INC 8-K Report, Corporate Update (Sep 2, 2008)

Filed September 2, 2008For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) announced on September 2, 2008, the formation and closing of its private investment vehicle, AvalonBay Value Added Fund II, L.P. (Fund II). This fund, with commitments from four institutional investors and AvalonBay itself, is designed to acquire and operate multifamily apartment communities. The strategy focuses on properties in AvalonBay's established high barrier-to-entry markets across the Northeast, Mid-Atlantic, Midwest, and West Coast. Fund II's objective is to create value through redevelopment, operational enhancements, and capitalizing on improving market fundamentals. This initiative demonstrates AvalonBay's strategy to leverage its expertise in select attractive markets and attract external capital to fuel growth and value creation, potentially enhancing returns for shareholders while expanding its property portfolio through a managed fund structure.

Key Highlights

  • 1AvalonBay Communities (AVB) announced the formation and closing of AvalonBay Value Added Fund II, L.P. (Fund II).
  • 2Fund II is a private, discretionary investment vehicle for multifamily apartment communities.
  • 3The fund secured commitments from four institutional investors and AvalonBay.
  • 4Targeted acquisitions are primarily in AvalonBay's high barrier-to-entry markets across the Northeast, Mid-Atlantic, Midwest, and West Coast.
  • 5The investment strategy aims to create value through redevelopment, enhanced operations, and improving market fundamentals.
  • 6This initiative represents a strategy to attract external capital for property acquisition and value creation.

Frequently Asked Questions

AvalonBay Value Added Fund II, L.P. (Fund II) is a private investment vehicle formed by AvalonBay Communities, Inc. to acquire and operate multifamily apartment communities.

The fund has commitments from four institutional investors in addition to AvalonBay Communities, Inc. itself.

Fund II will focus on acquiring and operating apartment communities in AvalonBay's high barrier-to-entry markets, with the goal of creating value through redevelopment, operational improvements, and capitalizing on market fundamentals.

This fund allows AvalonBay to leverage its expertise in key markets and attract external capital, potentially expanding its portfolio and enhancing shareholder returns without solely relying on its balance sheet for all acquisitions and value-add opportunities.