After a significant merger, the largest apartment real estate investment trust (REIT) has once again expanded its portfolio. Days after AvalonBay Communities and Equity Residential completed their US$71 billion merger – the largest merger of publicly traded REITs in history – the new firm, Vivmark Residential, acquired seven apartment complexes in Northern California near San Francisco. The transactions involved over 1,800 residential units and amounted to a total of US$741.8 million.
The Mercury News first reported on the sales to Vivmark Residential. The public company now holds a portfolio of over 180,000 rental residential units. The acquisitions are spread across seven separate deals.
Details of the Acquisitions
Vivmark acquired Avalon Campbell, a 348-unit complex at 508 Railway Avenue in Campbell, California, for US$147.3 million. Additionally, Avalon Towers on the Peninsula, a 238-unit property at 2400 West El Camino Real in Mountain View, California, was taken over for US$140.4 million. Avalon Fremont, a 308-unit complex at 39939 Stevenson Common in Fremont, California, changed hands for US$124.3 million.
- —Eaves Creekside, a 300-unit apartment complex at 151 Calderon Avenue in Mountain View, California, for US$117.3 million.
- —Eaves Fremont, a 237-unit property at 231 Woodcreek Common in Fremont, for US$88.9 million.
- —Eaves Dublin, a 204-unit apartment complex at 7904 Fall Creek Road in Dublin, California, for US$64.6 million.
- —Eaves Union City, a 208-unit property at 2175 Decoto Road in Union City, California, for US$59.1 million.
Strategic Focus on Coastal Markets
Brad Dillman, Founder and Principal of Florey Street Advisors, told CO after the merger announcement that both AvalonBay and Equity had an "enormous coastal presence across both firms" and "overlapped in about 95 percent of their geographies". The decision to acquire seven buildings in Northern California’s Bay Area underscores this coastal thesis. Dillman noted that either group could have merged with Camden Property Trust, which has a presence in the so-called Sun Belt. Instead, they opted to strengthen their position in coastal markets.
Vivmark Residential did not respond to requests for comment.
