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FORM 3 U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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OMB APPROVAL
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OMB Number: 3235-0104
Expires: September 30, 1998
Estimated average burden
hours per response........ 0.5
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INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
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1. Name and Address of Reporting Person*
BAY APARTMENT COMMUNITIES, INC.
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(Last) (First) (Middle)
4340 STEVENS CREEK BOULEVARD, SUITE 275
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(Street)
SAN JOSE CA 95129
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(City) (State) (Zip)
2. Date of Event Requiring Statement (Month/Day/Year) 03/09/98
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3. IRS Identification Number of Reporting Person if an Entity
(Voluntary)
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4. Issuer Name and Ticker or Trading Symbol AVALON PROPERTIES, INC. ("AVN")
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5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
[ ] Director [ ] Officer [X] 10% Owner [ ] Other
(give title below) (specify below)
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6. If Amendment, Date of Original (Month/Day/Year)
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7. Individual or Joint/Group Filing (Check Applicable Line)
[X] Form Filed by One Reporting Person
[_] Form filed by More than One Reporting Person
TABLE I--NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
<TABLE>
<CAPTION>
1. Title 2. Amount of 3. Ownership Form: 4. Nature of Indirect
of Security Securities Direct (D) or Beneficial
(Instr. 4) Beneficially Indirect (I) Ownership
Owned (Instr. 4) (Instr. 5) (Instr. 5)
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<S> <C> <C> <C>
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
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FORM 3 (continued)
TABLE II--DERIVATIVE SECURITIES BENEFICIALLY OWNED
(e.g., puts, calls, warrants, options, convertible securities)
<TABLE>
<CAPTION>
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1. Title of Derivative 2. Date Exer- 3. Title and Amount of Securities 4. Conversion 5. Ownership 6. Nature of In-
Security (Instr. 4) cisable and Underlying Derivative Security or Form of direct Bene-
Expiration (Instr. 4) Exercise Derivative ficial
Date Price Security: Ownership
(Month/Day/ of Direct (D) (Instr. 5)
Year) Derivative or In-
-------- -------- -------------------- ------------ Security direct (I)
Date Expira- Amount or (Instr. 5)
Exer- tion Title Number of
cisable Date Shares
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<S> <C> <C> <C> <C> <C> <C> <C>
Option to purchase (C) (C) Common Stock, par 8,584,000 $ 28.8125 D
Common Stock value $.01 per share (a)(b)
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</TABLE>
Explanation of Responses:
(a) Subject to adjustment as provided in the Stock Option Agreement between Bay
Apartment Communities, Inc. ("Bay") and Avalon Properties, Inc. ("Avalon"),
dated March 9, 1998 (the "Stock Option Agreement").
(b) Beneficial ownership of the 8,584,000 shares of common stock, par value
$.01 per share, of Avalon reported herein (the "Option Shares") is being
reported solely as a result of the option (the "Option") granted pursuant
to the Stock Option Agreement. Since the Option has not yet become
exercisable, Bay expressly disclaims beneficial ownership of the Option
Shares, and this report shall not be deemed an admission that Bay is the
beneficial owner of such securities for purposes of Section 16 or for any
other purpose.
(c) The Option becomes exercisable upon the occurrence of certain events, none
of which has occurred as of the date hereof. The Option will expire upon
the occurrence of certain events.
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
/s/ Gilbert M. Meyer March 19, 1998
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**Signature of Reporting Person Date
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, See Instruction 6 for procedure.
