FALLS CHURCH, VA-AvalonBay Communities Inc. has closed on the $38-million purchase of the Hillwood Square residential community here.

The Arlington, VA-based firm plans to redevelop the circa World War II era community and build approximately 461 residential units at the 20-acre site. Avalon acquired the property from the ownership of a cooperative of 160 individual homeowners called Hillwood Square Mutual Association.

The sale was brokered by ARA Real Estate Investment Services and Fraser Forbes Real Estate Service. The deal had been in discussion since Archstone Enterprises LP made an offer to buy the property in 2011. Avalon entered the picture after agreeing to acquire 40% of Archstone earlier this year.

The cooperative owners were facing the prospect of funding a significant amount of upgrades to the property's underground infrastructure, according to the Washington Business Journal.

"Hillwood was one of the most complicated as well as the most rewarding land deals we have had the opportunity to represent in our careers," said Mark Anstine, managing principal for ARA National Land Service, in a joint statement with ARA Principal Dan Lockard. "With 160 members we would like to thank our dedicated sellers that worked hard to help us reach the consensus needed for the sale of this landmark transaction." See story in the Washington Business Journal.