AvalonBay Plans $280M Apartment Development

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CHICAGO-AvalonBay Communities Inc., headquartered in Alexandria, VA, plans to build Avalon on South Clark, a 1,000-unit apartment development. The company recently acquired a 3.5-acre site on the 800 block of South Clark Street in Chicago's South Loop neighborhood. The property was acquired from Lennar Corp., based in Miami, a spokesman for AvalonBay confirms. The sales price was not disclosed but the estimated cost of the multi-phase development is approximately $280 million, according to a released statement from AvalonBay. Representatives from company were not available for comment.

Construction on the first phase of the project is expected to begin in the fall of 2008 and take approximately two years to finish. The complex will have amenities such as an outdoor pool, pool deck, picnic areas, outdoor running track, pet recreation park and a park fronting Clark Street, according to the company statement.

The site had previously received city approval for three towers with up to 1,000 units and garage parking. Lennar had plans to build about 1,000 condominium units on the site, as previously reported by GlobeSt.com. The $350-million condominium project would have included 1,000 units in three towers ranging from 34 stories to 42 stories. Lennar had acquired the site from Nashville-based Allright Parking in 2006 for $13.3 million.

AvalonBay owns, or has an ownership interest, in 176 apartment communities with a total of 49,402 units in 10 states and the District of Columbia. The company currently owns and manages seven properties in the Chicagoland area, in Arlington Heights, Schaumburg, Bloomingdale, Lombard, Westmont and Wheaton.