AvalonBay Communities, Inc. (AVB) Thursday said it is under contract with BSR Real Estate Investment Trust (HOM.U and HOM.UN) and its operating subsidiary, BSR Trust, LLC, to acquire two apartment communities in the Austin metropolitan area.
It has also entered into an agreement with BSR Real Estate Investment Trust, BSR Trust, and certain holders of Class B Units of BSR Trust, to acquire six apartment communities in the Dallas-Fort Worth metropolitan area.
"This transaction will double the size of our portfolio in our Texas Expansion Regions at a time when assets can be acquired at a compelling basis relative to today's construction costs, with assets that are strongly aligned with our portfolio allocation priorities," said Matthew Birenbaum, AvalonBay's Chief Investment Officer. "The assets are suburban garden communities with an average age of 11 years, providing a strong complement to our current and planned development activity with rents at a more affordable price point, and allowing for increased operating synergies as we increase our scale in these high-growth regions."
The acquisition of the Austin Assets is expected to close on or around March 31, 2025, for an aggregate purchase price of $187.0 million in cash, funded with disposition proceeds.
The acquisition of the Dallas Portfolio is expected to close in the second quarter of 2025 for a stated aggregate purchase price of $431.5 million, which will take the form of a cash payment of approximately $193.0 million.
The company reaffirms its previously disclosed ranges for first quarter and full year 2025 projected EPS, Projected FFO per share, and Projected Core FFO per share.
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