AvalonBay Communities Prices Common Stock Offering

ARLINGTON, Va.--(BUSINESS WIRE)-- AvalonBay Communities, Inc. (NYSE: AVB) today announced the pricing of a public offering of 5,100,000 shares of common stock at $128.25. The Company has also granted the underwriters a 30-day option to purchase up to an additional 765,000 shares to cover overallotments, if any. Settlement of the sale will occur on August 22, 2011. AvalonBay intends to use the aggregate net proceeds from the offering of approximately $630.7 million net of underwriting fees and estimated expenses to fund investment activity, including development, redevelopment and acquisitions and general corporate purposes.

Morgan Stanley, BofA Merrill Lynch and J. P. Morgan served as joint bookrunners for the offering. A registration statement relating to the common stock has been filed with the Securities and Exchange Commission and has become effective. The prospectus supplement and accompanying base prospectus relating to the offering may be obtained from Morgan Stanley & Co. LLC, 180 Varick Street, 2^nd Floor, New York, New York 10014, Attention: Prospectus Department, telephone: (866) 718-1649 or email: prospectus@morganstanley.com; Merrill Lynch, Pierce Fenner & Smith Incorporated, 4 World Financial Center, New York, New York, 10080, Attn: Prospectus Department or email dg.prospectus_requests@baml.com; or J.P. Morgan Securities LLC, Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York, 11717, telephone: (866) 803-9204.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offer or sale will be made only by means of the prospectus supplement and prospectus or authorized free writing prospectus relating to the offering which have or will be filed with the Securities and Exchange Commission.

About AvalonBay Communities

As of June 30, 2011, AvalonBay Communities, Inc., headquartered in Arlington, Virginia, owned or held an ownership interest in 195 apartment communities containing 56,516 apartment homes in ten states and the District of Columbia, of which 13 communities were under construction and eight communities were under reconstruction. AvalonBay is in the business of developing, redeveloping, acquiring, and managing apartment communities in high barrier-to-entry markets of the United States.

AvalonBay Communities, Inc.
Thomas J. Sargeant, 703-317-4635
Chief Financial Officer

Source: AvalonBay Communities, Inc.

Released August 17, 2011