Aimco Buys Six Philadelphia Area Apartment Communities
April 16 2018 - 4:23PM
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:
Residential Year Opened/
Community Submarket
Units
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
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/
AimcoSuzanne Sorkin, 303-793-4661Vice President, Investor
Relations/FP&AorInvestor RelationsInvestor@aimco.com
Apartment Investment and... (NYSE:AIV)
Historical Stock Chart
From Mar 2024 to Apr 2024
Apartment Investment and... (NYSE:AIV)
Historical Stock Chart
From Apr 2023 to Apr 2024