GDC's Crystal Hill Club Sells to AvalonBay Fund

POMONA, NY-A discretionary fund of AvalonBay Communities of Alexandria, VA has acquired the Crystal Hill Club, a 168-unit luxury rental apartment complex here from Ginsburg Development Corp. of Valhalla. No purchase price was disclosed in the deal. The property was the subject of a spirited, multiple round bidding process, say officials with Cushman & Wakefield Inc.'s Metropolitan Area Capital Markets Group, which represented GDC in the transaction.

Cushman's Jose Cruz says there were 15 to 20 serious bidders for the property that adjoins Route 202. In the end, AvalonBay Communities was selected as the winning bidder for the 12-acre site over about four or five other finalists. Working with Cruz on the deal were colleagues Andrew Merin, David Bernhaut and Gary Gabriel.

The property was acquired by AvalonBay Value Added Fund LP, a private discretionary investment entity in which AvalonBay Communities has a 15% equity interest.

The Crystal Hill Club was completed by GDC in 2003. The sale with AvalonBay does not include the 144 townhome-style condominiums that were built as part of the project.

The luxury rental component features one-and two-bedroom apartments in six townhome style buildings and three mid-rise structures. The complex also includes a clubhouse and other amenities, C&W officials say.

"Crystal Hill Club is considered to be among the region's premier luxury rental complexes, offering impressive curb appeal, efficiently designed units, a complete amenity package, and modern construction," says Cruz. "The property has very limited competition for renters seeking luxury residences within the densely populated Rockland, Orange and Bergen counties."

C&W's Merin adds that at the time of the sale, Crystal Hill Club's occupancy was well above 90%. "AvalonBay has a great opportunity to increase net operating income by taking advantage of improving market fundamentals and increasing revenue and/or reducing expenses at this property," he notes.