May 14, 2009 (FinancialWire) — Avalonbay Communities, Inc. (NYSE: AVB) said it has purchased a 220 unit apartment community in downtown Bellevue, Washington, on behalf of its secured investment management fund. The acquisition price was $33.1 million, reflecting a discount of around 45% below the company’s estimate of replacement cost.

The community, which was built in 1994, is a four story mid-rise over two levels of parking and is located near Avalonbay’s existing Avalon Bellevue community.

Avalonbay’s secured investment management fund is a private, discretionary investment vehicle with total equity commitments of $400 million, including a $125 million equity commitment from AvalonBay. According to Avalonbay, the fund can employ leverage of up to 65%, allowing for an investment capacity of around $1.1 billion.

The company said it is seeking new acquisition opportunities.

Alexandria, Virginia-based AvalonBay Communities owned or held a direct or indirect ownership interest in 173 apartment communities containing 50,291 apartment homes in ten states and the District of Columbia as of March 31.

The company said that 12 of its communities were under construction and seven communities were under reconstruction as of that date.

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