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Decision by AVR Realty to Sell 13-Property Multifamily Portfolio Driven by Investor Demand, Not Weakness in Market, Say Execs

Via Costar by JOHN DOHERTY

AVR Realty’s latest apartment offering is a massive portfolio including the SkyHouse Channelside in Tampa.

A big apartment owner with a number of multifamily holdings throughout the Southeast is exiting the region’s hot rental market with the listing of its latest portfolio.

AVR Realty, a national real estate investment and development firm based in Yonkers, NY, is shopping a 13-property, 3,760-unit portfolio of rentals in North and South Carolina, Georgia and Florida. Cushman & Wakefield is marketing the package, which is estimated to attract bids of about $850 million, or an average of $226,000 per unit.

The properties represent the last of AVR’s holdings of existing apartments in the Southeast region. 

What’s more, in somewhat of a contrarian play, AVR isn’t planning to plow the proceeds of the sale into new apartment acquisitions in the region, but instead plans to target hotels and other asset classes that comprise its diverse portfolio.

AVR officials say the move is largely driven by investor demand and current pricing for apartments in the region, and that its decision to sell shouldn’t be read as a sign it feels the Southeast rental market has peaked, they say.

“Apartments are hot as a pistol right now, and there is still tremendous growth in the Southeast,” said Don Hegermiller, AVR’s director of multifamily properties. “Apartments are in demand and we put together a portfolio that’s effectively a core portfolio. You don’t often see a portfolio like this coming to market.”

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