The SoMa property, Aurora Yerba Buena, is a 260-unit complex with 32,000 sf of retail leased to Whole Foods Market. Avalon Bay Value Added Fund LP acquired it for $66 million. Avalon Bay has a 15% stake in the fund. Avalon Cupertino is a 311-unit apartment complex that Avalon Bay developed for $49 million. It sold for a gross sales price of $88 million.

In addition to Cupertino, Avalon Bay also sold Avalon Estates, a 162-unit complex in the Boston area. Avalon Estates was developed at a total cost of $20.1 million and sold for a gross sales price of $34.6 million. Avalon Bay says the weighted average initial year cap rate for the two sales was 4.4% and produced a gross unleveraged IRR of 16.5% over an eight-year hold. The aggregate economic gain on total capital costs was approximately 74%.

Avalon Bay did not reveal the names of the other parties in its transactions and they were not otherwise immediately available. Proceeds from the sales were used to repay a portion of amounts outstanding on Avalon Bay's unsecured credit facility.

Aurora Yerba Buena, the SoMa property, includes a fitness center overlooking a sun deck, a sauna, three business centers and two conference rooms. It also comes with a 155-space parking garage. The SoMa district is sought after submarket. It is home to the San Francisco Museum of Modern Art, many restaurants and nightclubs, and is centrally located between the Financial District and Mission Bay.