AvalonBay Communities (AVB) recently acquired two multifamily properties in North Texas for a total of $225.1 million. The first property, Avalon Frisco at Main in Frisco, was purchased for $83.1 million and the second property, Avalon West Plano in Carrollton, was purchased for $142 million.
According to a report by Multifamily Dive, both properties have cap rates averaging in the mid-4% range and an average age of seven years. The average rent at these communities is around $1,700 per unit. AVB plans to make some minor upgrades to enhance the value of these apartments.
These acquisitions align with AVB’s strategy of investing in more affordable properties compared to its current portfolio which will contribute towards better growth opportunities for the REIT. In 2023 alone, AVB has sold over $445 million worth of assets at an average cap rate above 4%.
The recent purchase highlights Virginia-based REIT’s continued interest and investment activity within North Texas’ thriving real estate market.
