<SUBMISSION>
<ACCESSION-NUMBER>0000950123-10-097476
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20101025
<ITEMS>1.01
<ITEMS>2.01
<ITEMS>2.03
<ITEMS>3.02
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20101028
<DATE-OF-FILING-DATE-CHANGE>20101028
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AVATAR HOLDINGS INC
<CIK>0000039677
<ASSIGNED-SIC>1531
<IRS-NUMBER>231739078
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
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<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-07395
<FILM-NUMBER>101148542
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>201 ALHAMBRA CIRCLE
<CITY>CORAL GABLES
<STATE>FL
<ZIP>33134
<PHONE>3054427000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>201 ALHAMBRA CIRCLE
<CITY>CORAL GABLES
<STATE>FL
<ZIP>33134
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>GAC CORP /DE/
<DATE-CHANGED>19801023
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>GENERAL ACCEPTANCE CORP
<DATE-CHANGED>19710208
</FORMER-COMPANY>
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<TYPE>8-K
<SEQUENCE>1
<FILENAME>g25027e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<HEAD>
<TITLE>e8vk</TITLE>
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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT PURSUANT<BR>
TO SECTION 13 or 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><!-- xbrl,dc --><B>Date of report (Date of earliest event reported): October&nbsp;25, 2010</B><!-- /xbrl,dc --></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Avatar Holdings Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Its Charter)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Delaware<BR>
(State or Other Jurisdiction of Incorporation)</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
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<TR valign="bottom">
    <TD align="center" valign="top">001-07395
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">23-1739078</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
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<TR valign="bottom">
    <TD align="center" valign="top">201 Alhambra Circle, Coral Gables, Florida
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">33134</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">(305)&nbsp;442-7000<BR>
(Registrant&#146;s Telephone Number, Including Area Code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Not Applicable<BR>
(Former Name or Former Address, if Changed Since Last Report)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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</DIV>

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<!-- link1 "Items 1.01. Entry into a Material Definitive Agreement" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Items 1.01. Entry into a Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;25, 2010, Avatar Holdings Inc. (&#147;Avatar&#148;) and its wholly-owned subsidiary, Avatar
Properties Inc., as the purchaser, entered into an agreement with Terra West Communities LLC, JEN
JCH, LLC, Joseph Carl Mulac III, Stephen Adams, and Sun Terra Communities, LLC, collectively as the
sellers, and JEN Partners LLC, solely for the limited purposes set forth therein, to acquire a
portfolio of real estate assets in key geographic retirement areas in Arizona and Florida (the &#147;JEN
Transaction&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The assets and properties acquired in the JEN Transaction include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Arizona properties:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Joseph Carl Homes, LLC &#150; the Phoenix-based private home builder
and the developer of CantaMia, and single family homes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CantaMia &#150; a 1781 unit premier active adult community located
in the Estrella Mountain Ranch Master Plan Community in Goodyear, Arizona.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Florida properties:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sharpe properties &#150; 445 acres located in Orange County,
comprised of 839 partially developed lots, a multifamily tract, and a two-acre
commercial site.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total consideration for the JEN transaction was approximately $62&nbsp;million, consisting of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$30&nbsp;million in cash;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>approximately $20&nbsp;million in restricted common stock subject to a two-year lock up
agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>$12&nbsp;million of promissory notes divided equally into two $6&nbsp;million promissory notes
issued by Avatar Properties Inc., each payable jointly to JEN I, L.P. and JEN
Residential LP. Each promissory note bears interest at a rate of six percent (6%) per
annum, one with a one-year maturity and the second with a two-year maturity. Each
promissory note is guaranteed by Avatar pursuant to a guaranty dated October&nbsp;25, 2010.
Avatar Properties Inc. may, from time to time, make one or more voluntary prepayments,
in whole or in part, of the outstanding principal amounts under the promissory notes.
The events of default under the promissory notes are customary.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, the agreement provides for an earn-out of up to $8&nbsp;million in common stock, subject to
the achievement of certain agreed upon metrics related to the CantaMia projects by
December&nbsp;31, 2014.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;25, 2010, Avatar issued a press release announcing the JEN Transaction. A copy of
the press release is attached as Exhibit&nbsp;99.1 to this Current Report on Form 8-K.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "Item&nbsp;2.01. Completion of Acquisition or Disposition of Assets" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.01. Completion of Acquisition or Disposition of Assets.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Avatar completed the JEN Transaction on October&nbsp;25, 2010. The information contained in Item
1.01 above is incorporated herein by reference.
</DIV>
<!-- link1 "Item&nbsp;2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant" -->

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;2.03.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in Item&nbsp;1.01 above is incorporated herein by reference.
</DIV>
<!-- link1 "Item&nbsp;3.02. Unregistered Sales of Equity Securities" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3.02. Unregistered Sales of Equity Securities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the JEN Transaction, on October&nbsp;25, 2010, Avatar issued 1,050,572 shares of
common stock, and agreed to issue up to an additional 420,168 shares of its common stock, subject
to the achievement of certain agreed upon metrics related to the CantaMia projects by December&nbsp;31,
2014.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Avatar is relying on the exemption provided by Section&nbsp;4(2) of the Securities Act of 1933, as
amended, for the issuance of the shares of common stock, which exemption Avatar believes is
available because the securities were not offered pursuant to a general solicitation and the status
of the holders of the shares of common stock as &#147;accredited investors&#148; as defined in Regulation&nbsp;D
under the Securities Act.
</DIV>
<!-- link1 "Item&nbsp;5.02. Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5.02.  Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of
Certain Officers.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Appointment of Directors</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;25, 2010, in connection with the JEN Transaction, two members of JEN Partners LLC,
Reuben Leibowitz and Allen Anderson, were appointed to the Avatar Board of Directors.
Mr.&nbsp;Leibowitz and Mr.&nbsp;Anderson each has more than 30&nbsp;years of experience in building and growing
real estate companies and successfully managing through various real estate market cycles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Appointment of Officer</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;25, 2010, in connection with the JEN Transaction, Avatar appointed Joseph Carl
Mulac III Executive Vice President of Avatar and President of Avatar Properties Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Mulac, 49, served as the Chief Executive Officer of Joseph Carl Homes, LLC from April&nbsp;2009
until its acquisition by Avatar, as described above. From March&nbsp;2003 to April&nbsp;2009, Mr.&nbsp;Mulac
served in officer positions with Tousa, Inc., a leading homebuilder and financial services company
operating throughout four geographic regions: Florida, Mid-Atlantic, Texas, and the West; most
recently in the position of Group President West Region.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Mulac entered into an employment agreement with Avatar and Avatar Properties Inc. (the
&#147;Employment Agreement&#148;) dated as of October&nbsp;25, 2010. Pursuant to the Employment Agreement, the
initial term of Mr.&nbsp;Mulac&#146;s employment commences on October&nbsp;25, 2010, and ends on December&nbsp;31,
2012. Mr.&nbsp;Mulac&#146;s employment will automatically renew on January 1 of each subsequent year for
additional one-year terms and the term of employment will continue until Avatar or Mr.&nbsp;Mulac
provides written notice of non-renewal at least 90&nbsp;days prior to the expiration of the term. Mr.
Mulac&#146;s employment may also be terminated pursuant to customary termination provisions set forth in
the Employment Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Employment Agreement, Mr.&nbsp;Mulac will receive an annual base salary of
$300,000. Mr.&nbsp;Mulac is also eligible to receive an annual target bonus that will be targeted at
100% of the base salary. The annual target bonus amount is dependent upon the level of performance
targets achieved by Avatar (which determines 75% of the bonus) and subjective performance goals
(which determines 25% of the bonus) established by the compensation committee of the Board of
Directors and approved by the Board of Directors. For calendar year 2010, Mr.&nbsp;Mulac is guaranteed
a bonus of $150,000. On the commencement of his employment, Mr.&nbsp;Mulac will be granted an award of
180,000 restricted shares of common stock of Avatar. In general, of the 180,000 restricted shares
awarded, (i)&nbsp;36,000 shares (the &#147;time based award&#148;) vest incrementally over a time period ending
December&nbsp;31, 2014, and (ii)&nbsp;up to 144,000 shares (the &#147;performance based award&#148;) vest depending on
Avatar&#146;s stock being at least equal to specified hurdle prices (ranging from $25 to $40) for 20
trading days out of any consecutive 30-day period of time at dates through December&nbsp;31, 2015, in
each case subject to Mr.&nbsp;Mulac&#146;s continued employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that (i)&nbsp;Avatar terminates Mr.&nbsp;Mulac&#146;s employment without Cause (as such term is
defined in the Employment Agreement) or (ii)&nbsp;Mr.&nbsp;Mulac terminates his employment for Good Reason
(as defined in the Employment Agreement), Mr.&nbsp;Mulac will receive (A)&nbsp;accrued and unpaid base salary
and vacation earned through the date of termination; (B)&nbsp;provided Mr.&nbsp;Mulac executes a general
release of all claims against Avatar, (x)&nbsp;the greater of an amount equal to his annual base salary
or an amount equal to the base salary that he would have been paid from the date of termination
through the end of the then-applicable employment term) and (y)&nbsp;continued coverage under the
benefit plans until the end of the then-applicable employment term (or, if longer, for 12&nbsp;months);
and (C) (i)&nbsp;a number of the time based award shares that will vest as of the date of termination
based on the number of shares that would have vested during that year and the number of days
Mr.&nbsp;Mulac worked that year; and (ii)&nbsp;performance based award shares that would have vested on
December&nbsp;31 of the year in which his termination occurs (because some or all of the applicable
provisions of the Employment Agreement were satisfied before the date of such termination).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Employment Agreement also includes provisions relating to non-compete, non-solicitation,
confidentiality and compliance with Sections&nbsp;409A of the Internal Revenue Code of 1986, as amended.
In addition, pursuant to the terms of the Employment Agreement, upon the occurrence of a Change of
Control (as defined in Avatar&#146;s Amended and Restated 1997 Incentive and Capital Accumulation Plan
(2005 Restatement), as amended) during the term or within 120&nbsp;days following the termination of Mr.
Mulac&#146;s employment for any reason, other than a termination by Avatar for Cause or by Mr.&nbsp;Mulac
without Good Reason, (i)&nbsp;the time based award
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">will vest in full as of the date of the Change in Control, and (ii)&nbsp;the performance based
award will vest as of the date of the Change in Control, but only to the extent the applicable
provisions of the Employment Agreement were satisfied prior to, or in conjunction with, the Change
in Control.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Retirement of Officer</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael Levy, currently Executive Vice President of Avatar Properties Inc. and a named
Executive Officer of Avatar, will retire from his positions with Avatar and its subsidiaries upon
the expiration of his Employment Agreement with Avatar on December&nbsp;31, 2010.
</DIV>
<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;Exhibits
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release, dated October&nbsp;25, 2010.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "SIGNATURES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: October&nbsp;28, 2010
</DIV></TD>
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    <TD align="left" valign="top">Avatar Holdings Inc.</TD>
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    <TD align="left" valign="top">/s/ Juanita I. Kerrigan
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Juanita I. Kerrigan
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</DIV></TD>
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    <TD align="left" valign="top">Title: Vice President and Secretary</TD>
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    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">99.1
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit 99.1</B>
</DIV>



<DIV align="left" style="font-size: 18pt; margin-top: 12pt"><B>AVATAR</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>For Immediate Release</B></U>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>AVATAR HOLDINGS ACQUIRES PROPERTIES FROM JEN PARTNERS </B></U><BR>
<U><B>THAT SIGNIFICANTLY DIVERSIFY ITS </B></U><BR>
<U><B>REAL ESTATE PORTFOLIO IN ARIZONA AND FLORIDA </B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#151;Properties Acquired Fall in the &#145;Sweet Spot&#146; of Avatar&#146;s Active Adult Community Strategy&#151;<BR>
&#151;Transaction Further Strengthens Avatar&#146;s Senior Management Team; Expands Board of Directors&#151;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>CORAL GABLES, Fla., October&nbsp;25, 2010 </B>&#151; Avatar Holdings Inc. (&#147;Avatar&#148;) &#091;NASDAQ: AVTR&#093;, a leading
real estate company in Florida and Arizona, announced today that it acquired from JEN Partners LLC,
a New York-based real estate private equity fund, a portfolio of prime real estate assets in key
geographic retirement areas in Arizona and Florida for approximately $62&nbsp;million in cash, stock and
notes, plus an earn-out of up to $8&nbsp;million. Avatar&#146;s Board of Directors unanimously approved the
transaction which closed today.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Among the prime assets and properties being acquired from JEN Partners include:
</DIV>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Arizona properties</B>:</TD>
</TR>

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</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>&#149;</B> Joseph Carl Homes, LLC&#151; the Phoenix-based private home builder and the developer of CantaMia,
an active adult community, and single family homes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>&#149;</B> CantaMia&#151;a 1781 unit premier active adult community located in the Estrella Mountain Ranch
Master Plan Community in Goodyear, Arizona.
</DIV>

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    <TD width="1%">&nbsp;</TD>
    <TD><B>Florida properties:</B></TD>
</TR>

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</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>&#149;</B> Sharpe properties&#151; 445 acres located in Orange County, comprised of 839 partially developed
lots, a multi-family tract, and a two acre commercial site.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The purchase price consists of $30&nbsp;million in cash, $20&nbsp;million in restricted common stock subject
to a two-year lock up agreement, and $12&nbsp;million of notes divided equally into two $6&nbsp;million
notes, one with a 1-year maturity and the second with a 2-year maturity. In addition, the agreement
provides for up to $8&nbsp;million in common stock, subject to the achievement of certain agreed upon
metrics related to the CantaMia project by December&nbsp;31, 2014.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The newly-acquired properties will significantly expand Avatar&#146;s existing base in the two markets
it specializes in&#151;Arizona and Florida. It will also further expand Avatar&#146;s position into the
highly-desirable active adult community (ages 55&#043;) sector of the Arizona real estate market, and
bring to the company a number of proven real estate executives, including Joseph Carl Mulac III, a
former senior executive with Tousa , Inc. Mr.&nbsp;Mulac, founder and CEO of Joseph Carl Homes, joins
Avatar as Executive Vice President and President of its subsidiary, Avatar Properties Inc.
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additionally, as part of the agreement, two Managing Directors from JEN Partners, Reuben Leibowitz
and Allen Anderson, will join the Avatar Board of Directors. Prior to founding JEN Partners, Mr.
Leibowitz had spent 22&nbsp;years at Warburg Pincus and was responsible for the firm&#146;s real estate
effort. Mr.&nbsp;Anderson had been Chairman and CEO of Meridian Industrial Trust, a NYSE listed REIT
until its sale to Pro Logis in 1999. He joined JEN as a Senior Advisor in 2006 and became a
Managing Director of the firm in 2008. Mr.&nbsp;Leibowitz and Mr.&nbsp;Anderson each have more than 30&nbsp;years
of experience in building and growing real estate companies and successfully managing through
various real estate market cycles. Through this transaction, JEN Partners will become a significant
shareholder of Avatar.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gerald D. Kelfer, Avatar&#146;s President and Chief Executive Officer said, &#147;Cumulatively, this
transaction will be transformative for Avatar as it significantly strengthens and expands our
footprint, particularly in Arizona, bolsters our management team, and deepens the experience of our
Board of Directors. As I prepare to retire from day-to-day management responsibilities, I do so
with the confidence that this transaction is in the best interests of the company and its
shareholders.&#148; Mr.&nbsp;Kelfer, age 65, announced his retirement earlier this month. He will remain Vice
Chairman of Avatar&#146;s board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Leibowitz, a Managing Director of JEN Partners, added, &#147;From the outset, we were very excited
about the potential of this transaction and the prospects for Avatar, which is evidenced by the
significant equity stake JEN now holds in the company. We look forward to joining the Board and
making a meaningful contribution to the company.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Jon M. Donnell, who will become Avatar&#146;s President and Chief Executive Officer, effective November
15<SUP style="FONT-size: 85%; vertical-align: text-top">th</SUP>, added, &#147;This is an important transaction for Avatar. Many of the properties we
have just acquired from JEN are in the sweet spot of our strategy to build premium active adult
communities and consistent with our stated goal to capitalize on current market opportunities,&#148;
added Mr.&nbsp;Donnell. &#147;We are also very pleased that Carl Mulac is joining our company. He brings more
than 25&nbsp;years of experience developing and growing homebuilding operations to Avatar. He will be a
solid addition to our senior management team.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Donnell brings to Avatar over 20&nbsp;years of experience in homebuilding, land development, and
active adult communities&#151;the Company&#146;s prime areas of focus. From 1995-2004, he held several
executive positions at Dominion Homes, Inc., a builder of single family homes, and was President
and Chief Operating Officer from 1999-2004. From 1984-1995, he held various senior-level financial
and operational positions at Del Webb Corporation, a premier builder of master-planned, active
adult communities. More recently, from 2007 to present, he Co-Founded and has been a Principal of
The Monticello Group, LLC a specialty real estate advisory firm based in Sarasota, Florida.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>About Avatar Holdings</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Avatar Holdings Inc. is engaged in real estate operations in Florida and Arizona. In addition to
the properties acquired in its JEN Partners transaction, Avatar&#146;s principal operations are
conducted at Poinciana, Solivita and Bellalago in central Florida near Orlando; and Seasons at
Tradition in Port St.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Lucie, Florida and at Rio Rico, south of Tucson, AZ. Avatar&#146;s common shares trades on NASDAQ under
the symbol AVTR.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">###
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Contact:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Juanita I. Kerrigan<BR>
Avatar Holdings Inc.<BR>
201 Alhambra Circle<BR>
Coral Gables, FL 33134<BR>
(305)&nbsp;442-7000

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Melisa Sheer or Jeffrey Taufield<BR>
Kekst and Company Incorporated<BR>
437 Madison Avenue<BR>
New York, NY 10022<BR>
(212)&nbsp;521-4800

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