Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

AvalonBay, Regency Centers Buy Market Common Clarendon

AvalonBay Communities Inc. AVB in association with Regency Centers Corporation REG has acquired Market Common Clarendon from TIAA Global Asset Management for $406.0 million. AvalonBay has contributed $120.3 million to the purchase price while Regency paid $285.7 million.

This mixed-use development in Arlington, VA includes retail, restaurants, and residential buildings and is positioned next to Clarendon Boulevard in the Clarendon neighborhood. There are 300 apartment homes, 300,000 square feet of retail and 100,000 square feet of additional space.

According to an agreement between the residential real estate investment trust (REIT) – AvalonBay – and the retail REIT – Regency, all of the benefits of the residential components of Market Common Clarendon will be acquired by AvalonBay while the retail and all residual components will be under Regency’s ownership.

With a dense, prosperous, and highly educated customer base, this mixed-use asset’s acquisition seems a strategic fit for AvalonBay and Regency. Moreover, the property enjoys accessibility to the Clarendon metro station. There are various stores for fashion, electronics, groceries, and dining. In fact, the retail space is anchored by reputed companies like Whole Foods Market, Inc. WFM and Apple Inc. AAPL among others.

Importantly, mixed-use developments have gained popularity for solid neighborhood character, greater housing variety and density. Moreover, such developments lower the distance between housing, workplaces, retail businesses, and other amenities and destinations. Hence, such acquisitions enable the companies to capture the attention of people, who prefer to live, work and play in the same area – a trend that drove development in several other cities in the U.S.

Both AvalonBay and Regency currently carry a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
APPLE INC (AAPL): Free Stock Analysis Report
 
REGENCY CTRS CP (REG): Free Stock Analysis Report
 
AVALONBAY CMMTY (AVB): Free Stock Analysis Report
 
WHOLE FOODS MKT (WFM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research