The 204,600-square foot development was built in 1991 on eight acres at 355 North Wolfe Rd. The property was acquired by AvalonBay in 1996 for $37.2 million and the company subsequently invested an additional $1 million in the property. At the end of 2008, the property's average economic occupancy was 97.3% and its average rental rate was $1.82 per square foot.

The $43.8-million purchase price translates to $228,125 per unit and $214.64 per square foot. The cap rate was not released by the parties involved but the average cap rate for two other apartment properties it sold prior to the end of the third quarter was 6.8%, according to the company's own SEC filing.

M&M brokers Stanford Jones, Phil Saglimbeni and Sal Saglimbeni of the company's Palo Alto office had he disposition assignment. "Compelling agency financing, strong demand from qualified buyers and a lack of acquisition opportunities have created an opportunity for sellers to transact at aggressive pricing," Phil Saglimbeni says. "Buyers are highly motivated to transact, due in large part to a favorable spread between cap rates and interest rates."