AIMCO Buys Huge Stake in L.A. Multifamily

Denver-based investor Apartment Investment and Management Company, also known as AIMCO, has acquired the final 47% interest in the Palazzo joint venture, which is owned and operated by J.P. Morgan Asset Management, in a transaction valued at $451.5 million. The deal gives AIMCO 100% ownership of three Palazzo properties, all in the Mid-City submarket of Los Angeles: Palazzo at Park La Brea, Palazzo East and Villas at Park La Brea.

“The Palazzo communities are well-located properties in a desirable sub-market,” Paul Beldin, CFO of AIMCO, tells GlobeSt.com. “We are always looking for investment opportunities that increase the value, quality, and financial returns of our portfolio – and in markets with solid growth prospects and barriers to entry.  This leverage neutral, paired-trade transaction we expect will result in a 150 basis points higher free cash flow internal rate of return, increase AIMCO average monthly revenue per apartment home by $65, and shift capital from submarkets with lower revenue growth prospects to a submarket with higher rent growth and higher margins.”