Summary
- AvalonBay develops and manages apartment communities designed for mostly young professional singles and families.
- The company focuses on key U.S. urban and suburban markets in twelve states and the District of Columbia.
- AvalonBay operates over 85,000 apartments through three distinct brands, each with a specific submarket.
- Looking for a community to discuss ideas with? Margin of Safety Investing features a chat room of like-minded investors sharing investing ideas and strategies. Start your free trial today ยป
This is the fourth in a series of articles about real estate investment trusts with Standard & Poor's credit ratings of A or A-.
AvalonBay offers investors a focused diversity
AvalonBay Communities, Inc. (AVB) develops and manages apartment communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. These communities are designed for mostly young professional singles and families. The company is moving into two new markets: Denver and Southeast Florida.
AVB focuses on leading metropolitan areas in regions that the REIT believes "are characterized by growing employment in high wage sectors of the economy, lower housing affordability and a diverse and vibrant quality of life."
As of March 31, 2019, AVB owned or held an interest in 291 apartment communities containing 85,383 apartments in 12 states and the District of Columbia, offering garden, mid-rise and high-rise communities for three distinct demographic submarkets.
Three brands for three submarkets
AvalonBay's coast-to-coast U.S. geographic footprint includes 15 of the nation's strongest urban markets. AVB believes it is well-positioned to grow with the economy, particularly among urban and suburban professional adults.
The company offers three brands to serve specific submarkets:
- Avalon is a luxurious, spacious brand for professional singles and couples looking for "effortless enjoyment" near shops, restaurants and entertainment, with club rooms, fitness centers and on-site management.
- AVA is for active, urban millennial young adults, designed "to impress with an understated cool," with WiFi, U-verse, smartphone charging stations, a fitness center, common areas for socializing and bike storage to "stay fit and hassle-free." AVA appeals to mostly young singles in "high energy, transit-served" urban areas.
- Eaves, often pet-friendly and more suburban, is for the value-conscious, including families wanting "a few extra amenities, a friendly staff and a secure, comfortable place to live. These typically are garden apartment communities.
(Slide 40 from June 2019 Investor Update on AVB website)
