AvalonBay Sells DC Area Properties

AvalonBay Communities, Inc. announced this week that it had completed the sale of two Washington, DC-area properties this month for $332 million. The Arlington-based company sold Avalon Decoverly in Rockville, Maryland for $135 and Crystal House in Arlington, Virginia for $262.5 million. Both properties were sold at a weighted average initial year market capitalization rate of 5.2%. Mack-Cali Realty Corp., a real estate investment trust, purchased Crystal House in a joint venture with a fund advised by UBS Global Asset Management. Walker & Dunlop LLC provided a $165 million mortgage loan to the JV through a Fannie Mae program, according to a CoStar report.

"The Mack Cali/Roseland team is thrilled to be entering the Metro DC market, one that offers enormous potential. When we've completed the renovation project, we are confident that we'll be able to command rents at the highest end of the market," said Mitchell Hersh, president and chief executive officer of Mack-Cali.

AvalonBay completed its acquisition of Archstone Enterprise with partner Equity Residential last month; Crystal House was acquired as part of its Archstone Enterprise deal, according to a Washington Business Journal article. AvalonBay and Equity Residential formed the joint venture partnership to buy Archstone's assets. AvalonBay got 40% of the portfolio, or 60 apartment communities, including thousands of apartments in the Washington area, while Equity Residential got the remaining 60%, or 78 properties.

For more news and information visit Blumberg Capital Partners.

Walker & Dunlop Buying CWCapital for $220M

Walker & Dunlop, Inc. announced this month that it had entered into a definitive agreement to acquire its rival lender, CWCapital LLC, for $220 million. According to the company, $80 million of the purchase will be provided in cash and approximately $140 million in Walker & Dunlop stock, subject to potential adjustment based on changes in the company's stock price, and pending the expected closing within then next 3-4 months.

"We are thrilled to announce this acquisition. CWCapital is an exceptional company with an outstanding team and a corporate culture very similar to Walker & Dunlop's," commented Willy Walker, Chairman, President and CEO of Walker & Dunlop. "The combined company will be one of the largest commercial real estate lenders in the United States," Walker continued. "CW's people, credit discipline, and client focus are highly regarded throughout the industry. It's a wonderful accomplishment to bring these two fantastic companies together and create a true industry force."

CWCapital, is a subsidiary of CW Financial Services LLC, which is owned by Fortress Investment Group LLC. Founded in 1972 and with 180 currently employees, CWCapital lends money to multifamily, healthcare and commercial real estate industries and has in-house origination capabilities for Fannie Mae, Freddie Mac and life insurance companies.

For more news and information visit Blumberg Capital Partners.