<SEC-DOCUMENT>0001104659-16-146573.txt : 20160926
<SEC-HEADER>0001104659-16-146573.hdr.sgml : 20160926
<ACCEPTANCE-DATETIME>20160926172951
ACCESSION NUMBER:		0001104659-16-146573
CONFORMED SUBMISSION TYPE:	FWP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160926
DATE AS OF CHANGE:		20160926

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AVALONBAY COMMUNITIES INC
		CENTRAL INDEX KEY:			0000915912
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				770404318
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		FWP
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	333-202185
		FILM NUMBER:		161902993

	BUSINESS ADDRESS:	
		STREET 1:		671 N. GLEBE ROAD
		STREET 2:		SUITE 800
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22203
		BUSINESS PHONE:		7033296300

	MAIL ADDRESS:	
		STREET 1:		671 N. GLEBE ROAD
		STREET 2:		STE 800
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22203

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AVALON BAY COMMUNITIES INC
		DATE OF NAME CHANGE:	19980618

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BAY APARTMENT COMMUNITIES INC
		DATE OF NAME CHANGE:	19931208

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AVALONBAY COMMUNITIES INC
		CENTRAL INDEX KEY:			0000915912
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				770404318
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		FWP

	BUSINESS ADDRESS:	
		STREET 1:		671 N. GLEBE ROAD
		STREET 2:		SUITE 800
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22203
		BUSINESS PHONE:		7033296300

	MAIL ADDRESS:	
		STREET 1:		671 N. GLEBE ROAD
		STREET 2:		STE 800
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22203

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AVALON BAY COMMUNITIES INC
		DATE OF NAME CHANGE:	19980618

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BAY APARTMENT COMMUNITIES INC
		DATE OF NAME CHANGE:	19931208
</SEC-HEADER>
<DOCUMENT>
<TYPE>FWP
<SEQUENCE>1
<FILENAME>a16-16920_2fwp.htm
<DESCRIPTION>FWP
<TEXT>


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<body link=blue lang="EN-US">
<div style="font-family:Times New Roman;">
<p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Filed Pursuant to Rule 433</font></b></p>
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Supplementing the Preliminary Pricing Supplement No. 22 dated September 26, 2016</font></b></p>
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(To Prospectus dated February 19, 2015 and</font></b></p>
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Prospectus Supplement dated May&nbsp;6, 2015</font></b></p>
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Registration Statement No. 333-202185</font></b></p>
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">AVALONBAY COMMUNITIES, INC.</font></u></b></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">TERMS OF THE NOTES</font></u></b></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Medium-Term Notes&#151;Fixed Rate</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Terms Applicable to the $300,000,000 2.90% Notes due 2026 (the &#147;</font></b><b>2026 Notes&#148;)</b></p>
<p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;">
<tr>
<td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Principal Amount: $300,000,000</font></p>    </td>
<td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
<p align="right" style="margin:0in 2.15pt .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Issue Price (Public Offering Price): 99.689%</font></p>    </td>   </tr>
<tr>
<td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Net Proceeds (before   expenses) to the Company: $297,117,000</font></p>    </td>
<td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
<p align="right" style="margin:0in 2.15pt .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Agents&#146; Discount Commission: 0.650%</font></p>    </td>   </tr>
<tr>
<td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Stated Maturity Date: October   15, 2026</font></p>    </td>
<td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
<p align="right" style="margin:0in 2.15pt .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest Rate: 2.900%</font></p>    </td>   </tr>
<tr>
<td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Original Issue Date: October   5, 2016</font></p>    </td>
<td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
<p align="right" style="margin:0in 2.15pt .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">CUSIP: 05348E&nbsp; AY5</font></p>    </td>   </tr>
<tr>
<td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest Payment Dates:   April 15 and October 15</font></p>    </td>
<td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">First Interest   Payment Date: April 15, 2017</font></p>    </td>   </tr>  </table>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Terms Applicable to the $350,000,000 3.90% Notes due 2046 (the &#147;</font></b><b>2046 Notes&#148;)</b></p>
<p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;">
<tr>
<td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Principal Amount: $350,000,000</font></p>    </td>
<td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
<p align="right" style="margin:0in 2.15pt .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Issue Price (Public Offering Price): 99.595%</font></p>    </td>   </tr>
<tr>
<td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Net Proceeds (before   expenses) to the Company: $345,520,000</font></p>    </td>
<td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
<p align="right" style="margin:0in 2.15pt .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Agents&#146; Discount Commission: 0.875%</font></p>    </td>   </tr>
<tr>
<td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Stated Maturity Date: October   15, 2046</font></p>    </td>
<td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
<p align="right" style="margin:0in 2.15pt .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest Rate: 3.900%</font></p>    </td>   </tr>
<tr>
<td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Original Issue Date: October   5, 2016</font></p>    </td>
<td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
<p align="right" style="margin:0in 2.15pt .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">CUSIP: 05348E&nbsp; AZ2</font></p>    </td>   </tr>
<tr>
<td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest Payment Dates:   April 15 and October 15</font></p>    </td>
<td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">First Interest   Payment Date: April 15, 2017</font></p>    </td>   </tr>  </table>
<p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Terms Applicable to the 2026 Notes and the 2046 Notes (collectively, the &#147;Notes&#148;)</font></b></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Redemption:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Wingdings" style="font-size:11.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">The Notes cannot be redeemed prior to the applicable Stated Maturity Date at the option of the Company.</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Wingdings" style="font-size:11.0pt;">x</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">The Notes may be redeemed prior to the applicable Stated Maturity Date at the option of the Company.</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Initial Redemption Date: At any time prior to the applicable Stated Maturity Date. See Additional/Other Terms.</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Initial Redemption Percentage/Redemption Price: See Additional/Other Terms.</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Annual Redemption Percentage Reduction: N/A</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Optional Repayment:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Wingdings" style="font-size:11.0pt;">x</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">The Notes cannot be required to be repaid prior to the applicable Stated Maturity Date at the option of the Holder of the Notes.</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Wingdings" style="font-size:11.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">The Notes can be repaid prior to the applicable Stated Maturity Date at the option of the Holder of the Notes.</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Optional Repayment Dates:</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Repayment Price:&#160;&#160;&#160;&#160;&#160;&#160; %</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Currency:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Specified Currency: U.S. Dollars (If other than U.S. Dollars, see attached)</font></p>
<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Minimum Denominations:</font></p>
<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(Applicable only if Specified Currency is other than U.S. Dollars)</font></p>
<p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade align="left" style="color:#010101;"></div>
</div>
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<div style="font-family:Times New Roman;">
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Original Issue Discount (&#147;OID&#148;):&#160;&#160;&#160; </font><font size="2" face="Wingdings" style="font-size:11.0pt;">o</font><font size="2" style="font-size:11.0pt;"> Yes&#160;&#160;&#160; </font><font size="2" face="Wingdings" style="font-size:11.0pt;">x</font><font size="2" style="font-size:11.0pt;"> No</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Total Amount of OID:</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Yield to Maturity:</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Initial Accrual Period:</font></p>
<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Form:&#160;&#160;&#160; </font><font size="2" face="Wingdings" style="font-size:11.0pt;">x</font><font size="2" style="font-size:11.0pt;"> Book-Entry&#160;&#160;&#160; </font><font size="2" face="Wingdings" style="font-size:11.0pt;">o</font><font size="2" style="font-size:11.0pt;"> Certificated</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Additional/Other Terms:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Other Terms:</font></i></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Reopening of Issue.</font></i><font size="2" style="font-size:11.0pt;">&#160; The Company may, from time to time and without the consent of the noteholders, reopen an issue of notes and issue additional notes having the same terms and conditions (including maturity, interest payment terms and CUSIP number) as notes issued on an earlier date, except for the issue date, issue price and, if applicable, the first payment of interest. After such additional notes are issued, they will be fungible with the notes issued on such earlier date.</font></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Optional Redemption. </font></i><font size="2" style="font-size:11.0pt;">The Notes may be redeemed at any time at the option of AvalonBay, in</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">whole or in part, upon notice of not more than 45 and not less than 15 days prior to the date fixed for</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">redemption (each, a &#147;Redemption Date&#148;), at a Redemption Price equal to the sum of (i)&nbsp;the principal</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">amount of the Notes being redeemed, plus accrued interest thereon to the Redemption Date and</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">(ii)&nbsp;the Make-Whole Amount, if any, with respect to such Notes. If the Notes are redeemed on or after</font><font size="2" style="font-size:11.0pt;"> 90 </font><font size="2" style="font-size:11.0pt;">days (in the case of the </font><font size="2" style="font-size:11.0pt;">2026 </font><font size="2" style="font-size:11.0pt;">Notes) or </font><font size="2" style="font-size:11.0pt;">180 </font><font size="2" style="font-size:11.0pt;">days (in the case of the </font><font size="2" style="font-size:11.0pt;">2046 </font><font size="2" style="font-size:11.0pt;">Notes) prior to the</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">applicable Stated Maturity Date (in each case, the &#147;Par Call Date&#148;), the Redemption Price will equal</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">100% of the principal amount of the applicable series of Notes being redeemed plus accrued interest</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">thereon to the Redemption Date.</font></p>
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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Acceleration of Maturity; Make-Whole Amount. </font></i><font size="2" style="font-size:11.0pt;">If an Event of Default with respect to the Notes of</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">any series that are then outstanding occurs and is continuing, and pursuant to Section&nbsp;2.7 of the</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">Amended and Restated Third Supplemental Indenture dated as of July&nbsp;10, 2000 (the &#147;Third</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">Supplemental Indenture&#148;), the Trustee or the Holders of not less than 25% in principal amount of the</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">then outstanding Notes of the applicable series shall have declared the principal amount (or, if the</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">Notes of the applicable series are Original Issue Discount Securities or Indexed Securities, such portion</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">of the principal as may be specified in the terms hereof) of all the Notes of the applicable series to be</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">due and payable immediately, by a notice in writing to AvalonBay (and to the Trustee if given by the</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">Holders), then upon any such declaration such principal, or specified portion thereof, plus accrued</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">interest to the date the Notes of the applicable series are paid, plus the Make-Whole Amount on the</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">applicable series of Notes, shall become immediately due and payable. With respect to the Notes of the</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">applicable series, if an Event of Default set forth in Section&nbsp;501(6)&nbsp;of the Indenture, dated as of</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">January&nbsp;16, 1998, between AvalonBay and the Trustee (the &#147;Indenture&#148;) occurs and is continuing, such</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">that pursuant to Section&nbsp;2.7 of the Third Supplemental Indenture all the Notes of the applicable series</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">are immediately due and payable, without notice to AvalonBay, at the principal amount thereof (or, if</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">the Notes of the applicable series are Original Issue Discount Securities or Indexed Securities, such</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">portion of the principal as may be specified in the terms of the applicable series of Notes), plus</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">accrued interest to the date the applicable series of Notes are paid, then the Make-Whole Amount on</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">the applicable series of Notes shall also be immediately due and payable.</font><font size="2" style="font-size:11.0pt;">  </font></p>
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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Definitions.</font></i><font size="2" style="font-size:11.0pt;">&#160; Terms used but not defined herein shall have the meanings set forth in the Indenture and the Third Supplemental Indenture. The following terms shall have the following meanings:</font></p>
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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&#147;Make-Whole Amount&#148; means, in connection with any optional redemption or accelerated</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">payment of any Note, the excess, if any, of (i)&nbsp;the aggregate present value as of the date of such</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">redemption or accelerated payment of each dollar of principal being redeemed or paid and the amount</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">of interest (exclusive of interest accrued to the date of redemption or accelerated payment) that would</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">have been payable in respect of such dollar to the applicable</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">Par Call Date, determined by discounting, on a semi-annual basis, such principal and interest at the</font><font size="2" style="font-size:11.0pt;"> applicable </font><font size="2" style="font-size:11.0pt;">Reinvestment Rate (determined on the third Business Day preceding the date such notice of</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">Redemption is given or declaration of acceleration is made) from the respective dates on which such</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">principal and interest would have been payable if such redemption or accelerated payment had been made on the applicable Par Call Date, over (ii)&nbsp;the aggregate principal amount of the Notes being redeemed or paid.</font><font size="2" style="font-size:11.0pt;">  </font></p>
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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&#147;Reinvestment Rate&#148; means, in the case of the 2026 Notes, </font><font size="2" style="font-size:11.0pt;">twenty </font><font size="2" style="font-size:11.0pt;">(20) basis points and, in the</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">case of the 2046 Notes, </font><font size="2" style="font-size:11.0pt;">twenty-five </font><font size="2" style="font-size:11.0pt;">(25) basis points, plus in each case the arithmetic mean of the yields</font><font size="2" style="font-size:11.0pt;">&#160; </font><font size="2" style="font-size:11.0pt;">under the respective headings &#147;This Week&#148; and &#147;Last Week&#148; published in the Statistical Release under</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">the caption &#147;Treasury Constant Maturities&#148; for the maturity (rounded to the nearest month)</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">corresponding to the remaining life to the applicable Par Call Date, as of the payment date of the principal being</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">redeemed or paid. If no maturity exactly corresponds to such maturity, yields for the two published</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">maturities most closely corresponding to such maturity shall be calculated pursuant to the immediately</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">preceding sentence and the applicable Reinvestment Rate shall be interpolated or extrapolated from such yields</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">on a straight-line basis, rounding in each of such relevant periods to the nearest month. For such</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">purposes of calculating the applicable Reinvestment Rate, the most recent Statistical Release published prior to</font><font size="2" style="font-size:11.0pt;">  </font><font size="2" style="font-size:11.0pt;">the date of determination of the Make-Whole Amount shall be used.</font></p>
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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&#147;Statistical Release&#148; means the statistical release designated &#147;H.15(519)&#148; or any successor publication which is published weekly by the Federal Reserve System and which establishes yields on actively traded United States government securities adjusted to constant maturities or, if such statistical release is not published at the time of any determination of the Make-Whole Amount, then such other reasonably comparable index which shall be designated by AvalonBay.</font></p>
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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The Company has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may get these documents for free by visiting the SEC Web site at www.sec.gov.&#160; Alternatively, the Company or any agent participating in the offering will arrange to send you the prospectus if you request it.</font></p>
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