DENVER--(BUSINESS WIRE)--
As previously announced, Apartment Investment and Management Company
(“Aimco”) (NYSE: AIV) entered into a transaction to acquire six
apartment communities in the Philadelphia MSA for a purchase price of
$445 million. The portfolio includes 1,006 existing apartment homes, 110
apartment homes under construction, and 185,000 square feet of office
and retail space. This “A” quality portfolio is located primarily in the
Center City and University City submarkets of Philadelphia. Details on
all six communities are:
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| Residential |
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| Year Opened/ | |
| Community |
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| Submarket |
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| Units |
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| Renovated | |
| The Left Bank | | | | |
University City
| | | | |
282
| | | | |
2001/2017
| |
|
777 South Broad
| | | | | Center City | | | | |
146
| | | | |
2010
| |
|
Locust on the Park
| | | | | Center City | | | | |
152
| | | | |
1999/2017
| |
|
SouthStar Lofts
| | | | | Center City | | | | |
85
| | | | |
2014
| |
|
The Victor
| | | | |
Camden
| | | | |
341
| | | | |
2004
| |
|
One Ardmore Place | | | | | Lower Merion | | | | |
110
| | | | |
Expected Completion: 2019
| |
| | | | | | | | | | | | | | | |
|
| Total | | | | | | | | | | 1,116 | | | | | | |
| | | | | | | | | | | | | | | |
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The acquisition will be initially funded with $290 million of existing
property debt, $65 million borrowed on the Aimco bank line, and $90
million in operating partnership (“OP”) units issued at Aimco Net Asset
Value of $53 per share. Consistent with its paired trade discipline,
Aimco plans to sell lower-rated apartment communities to reduce debt
making the acquisition leverage neutral. One of the communities expected
to be sold is Chestnut Hill Village, a 704-home community built in 1963
and located in northeast Philadelphia.
The transaction is expected to be neutral to property level free cash
flow and to increase expected future returns (as measured by free cash
flow internal rate of return) by about 150 bps considering the
properties to be sold and the OP units to be issued. In addition, Aimco
expects that certain of the properties have the potential for accretive
expansion opportunities which could further enhance investment returns.
Pro forma the paired trade, Aimco will own 3,208 apartment homes in the
Philadelphia area, representing about 10% of its GAV, up from 8% today.
The acquisitions are expected to close in 2Q18, except for the purchase
of One Ardmore Place which is expected to close in 1H19, after
completion of construction.
Citigroup acted as exclusive financial advisor to Aimco on the
transaction.
About Aimco
Aimco is a real estate investment trust focused on the ownership and
management of quality apartment communities located in select markets in
the United States. Aimco is one of the country’s largest owners and
operators of apartments, with ownership interests in 180 communities in
22 states and the District of Columbia. Aimco common shares are traded
on the New York Stock Exchange under the ticker symbol AIV, and are
included in the S&P 500. For more information about Aimco, please visit
our website at www.aimco.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180416006448/en/
Aimco
Suzanne Sorkin, 303-793-4661
Vice President,
Investor Relations/FP&A
or
Investor Relations
Investor@aimco.com
Source: Aimco