Avalon Bay Communities is apparently trying to unload its luxury rental building on the Lower East Side. Take a look at this blurb that popped up on a real estate industry web site:
An AvalonBay Communities partnership is teeing up an apartment property on Manhattan’s Lower East Side that could attracts bids of $400 million. The 361-unit Avalon Chrystie Place, which was built in 2005, is 95% occupied. At the estimated value of $1.1 million/unit, the initial annual yield would be about 4%. Although the offering is likely to appeal to core investors, a buyer could upgrade the apartment interiors in order to raise rents and boost the return. AvalonBay, a REIT in Arlington, Va., and its partner, J.P. Morgan Asset Management, have given the listing to HFF. The 14-story complex is at 229 Chrystie Street, on the southwest corner of Houston Street. The site, next to a subway stop, is within walking distance of SoHo, Greenwich Village, Little Italy and Chinatown. There is 72,000 square feet of retail space on the street level, most of which is leased to a Whole Foods supermarket until 2028. A buyer would have to assume a $117 million floating-rate Fannie Mae mortgage, which could be prepaid or augmented with subordinate debt. Eighty percent of the units, or 289, command market rents, while the remaining 72 are regulated under New York City rent guidelines. The units range in size from studios to two bedrooms. The amenities include a fitness center, a rooftop deck and 24-hour concierge service.
Avalon Chrystie Place was built in 2004, one of four buildings constructed in the former Cooper Square Urban Renewal Area.