ARLINGTON, VA-Local REIT AvalonBay is borrowing a strategy the hotel industry uses to position its product, but in this case with apartment buildings. It is launching two distinct brands in the hopes of attracting very specific demographics of renters. “We have done a lot of market research to see which sector has been the best performing in preparing to launch these,” Kurt Conway, AvalonBay's SVP of brand strategy and marketing, tells GlobeSt.com.  

AVA is aimed at people, particularly the Gen Y segment, who want to live in or near urban neighborhoods. These buildings are or will be located close to restaurants, nightlife, shopping and public transportation, and generally feature smaller units, suited in some cases, for roommate living. Eaves will be aimed at renters that want to be in suburban areas and at more moderately priced rents.

Going forward, AvalonBay will develop or redevelop properties along its AVA brand. Already it has several developments underway that it will debut under this flag. These are located in Manhattan’s Chelsea neighborhood, Washington DC’s H Street Corridor and Seattle’s Ballard area. Eaves will grow through redevelopment and acquisition. In 2012, the REIT plans to redevelop approximately 10 communities and reflag another 20 to 25 properties as “eaves.”

AvalonBay’s existing brand, “Avalon” focuses on upscale apartment living and high-end amenities and services. The REIT also plans to continue to roll out this brand, Conway says.  “Over time we expect the Avalon take up some 50-60% of our portfolio, while AVA will hold between 10-20% and eaves, between 20-30%.”