AvalonBay is a real estate investment trust company that develops, redevelops, acquires and manages high-quality apartment communities.

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For some companies, having skilled employees is enough to build products that everyone will remember. Employing a talented work force is important for AvalonBay Communities, but what really sets the company apart is the sense of pride and passion that radiates from its developments, according to Vice President of Construction Scott Kinter.

AvalonBay is a real estate investment trust company that develops, redevelops, acquires and manages high-quality apartment communities in high-barrier-to-entry markets located in the Northeast, Mid-Atlantic, Midwest, Pacific Northwest and California. The company’s forte is acquiring and developing land in places where it is difficult to permit and build apartments, Kinter explains.

“That gives us an edge – a step up on the competition,” he says. “We have about 50,000 apartment homes in 10 states, and we have 20 communities [under] construction right now.” Kinter is responsible for the New England and Long Island, N.Y., areas, and is currently developing eight new communities there.

AvalonBay Communities is a name that everyone recognizes in the industry, Kinter notes. “AvalonBay is almost like a brand name,” he states. “When people mention AvalonBay in all markets – more so in the Boston market – people know [we build] quality apartments. We’re probably the biggest player up here.” He adds that building in markets where everyone knows your name is encouraging.

“It is huge when you are building something in your backyard or in the next town or the town that you live in,” Kinter continues. “You tend to try harder and you tend to want to please the townspeople. You want people to be proud of what you are building because you are.

“Working for AvalonBay, everyone has lots of passion in what they do – we have a lot of pride. And, by [working in] so many communities, the passion is contagious. People recognize it; they can identify. If people love what they do, it reflects on what they do.”

Sticking Around
Founded in 1993, AvalonBay’s success starts from the development side of the business. “The developers are out there acquiring properties in high-end towns that are really difficult to do business in,” Kinter notes. “Our success relies on the developers’ expertise at permitting these properties. To get them entitled is the key. Once they pass the property over to the construction group, we need to go out and execute the construction of a land and building plan that we are going to own and operate for years to come.”

AvalonBay not only develops the communities, but the company keeps them, Kinter says. “We are not merchant builders,” he stresses. “We don’t build [apartments], get it filled and sell them. We hold on to them.”

And despite the volatile market, AvalonBay stands behind this commitment. “Once we complete the construction and we know we did a great job executing it, the townspeople see [the end-products],” Kinter says. “We are neighbors with these people. We don’t build the apartments and disappear. We stick around.” As a testament to its commitment to the community, the company has regional offices in every market, including San Jose and Newport Beach, Calif.; Shelton, Conn.; Boston; Chicago; New York; Woodbridge, N.J.; Virginia Beach, Va.; and Seattle.

“We become part of the city, we are part of the state, and we use local contractors that stand behind us and give us the best pricing because we have always been able to keep them busy,” Kinter says.

Finding ‘the Best Dirt’
AvalonBay has a staff of 1,919 people. Kinter oversees 40 of these employees in his region, and they have managed about $500 million worth of construction over the past 24 months.

The company’s strategy for acquiring properties is finding good locations. “We have always looked for properties that are very close to urban areas,” Kinter notes. “For example, we have 26 properties in Massachusetts that are built within 30 miles of Boston. We make sure it is surrounded by a hub when we try to find the best dirt.”

Some of AvalonBay’s notable projects in Massachusetts include Avalon Danvers, Avalon at Lexington Hills and Avalon at the Hingham Shipyard.

Avalon Danvers, located in the Hawthorne Hill neighborhood in Danvers, is a 433-unit project designed for one-, two- and three-bedroom apartments. Sixty-one of these units reside in a redeveloped building that used to be home to Danvers State Hospital, a mental institution built in the late 1800s. The project is valued at about $84 million.

Avalon at Lexington Hills offers something for everyone, the company says, with apartment homes, town homes and an exclusive building for active adults aged 55 and over. The development has 387 units, 293 of which are located in a mid-rise building. The $87 million development was also home to Lexington Metropolitan State hospital, a former mental state hospital.

A master-planned, ocean-side community located about 40 minutes south of Boston, Avalon at the Hingham Shipyard boasts 235 apartment units that sit on a historical shipyard building facility.

“The Hingham Shipyard is where they used to build U.S. Navy war ships during the second World War,” Kinter notes. “We have taken a pretty industrial-looking area and developed it into a [spectacular] community.”

‘The 500-Pound Gorilla’
Everyone in the industry is experiencing the same challenges – increasing material prices and shortage of labor – but circumstances are not so severe for Avalon-Bay. In fact, even though the prices of steel, concrete and fuel continue to escalate, the company’s strong relationships with subcontractors and vendors help it weather the storm.

“We believe that, in Boston and Connecticut for example, we are the 500-pound gorilla,” Kinter stresses. “We continue to develop and build despite this economic climate. We are one of the only builders out there that have several projects under construction. We are very attractive to vendors and subcontractors.

“We are even more attractive today than previous years because of this so-called recession we are in.

“The subcontractors and vendors seem to be more hungry, although on the surface it may not appear that they are,” Kinter continues.

“But I believe [AvalonBay] gets the best prices from subcontractors because of the volume in which we build. We buy so many building products such as lumber and roofing, and because of the volume, we get great pricing. “Sure [high prices] are a challenge, but if you look at what we spend in comparison to our competition, I believe we spend less.”

Leading the Success
Kinter also credits AvalonBay’s leaders for the company’s ongoing success. “What makes us so unique and separates us from most [of our competitors] is the senior leadership team in our construction group,” he says, noting that the average tenure of six vice presidents of construction is 10 years.

Kinter has been with AvalonBay for 14 years and has been involved in 43 projects and more than 10,000 apartments. “I find that very important,” he continues. “Consistent leadership has been one of the keys to our success.

“[Our] ability and willingness to change is most definitely [important],” he adds.