Aimco Closes $590M Portfolio Sale to Related Cos.

DENVER–Apartment Investment and Management Co. has closed the previously announced sale of its Asset Management portfolio and four affordable apartment communities to Related Cos.’ affordable division for $590 million. With this sale, Aimco completes the exit from its affordable housing line of business.

Aimco’s Asset Management portfolio, which consists of 51 properties and 7,837 apartment units, is a fee-based business in which Aimco has been the general partner in partnerships owning interests in low-income housing tax credit apartment communities. As general partner, Aimco has provided asset management and other services to these partnerships and has received fees and other payments in return. The portfolio sale to Related also includes the Hunters Point communities – four affordable, garden style communities with 604 apartment homes located in San Francisco, CA.

After closing costs and repayment of the Hunters Point property debt, the net proceeds to Aimco are expected to be approximately $512 million. Aimco plans to use this to partially fund the previously-announced acquisitions of  Bent Tree in Fairfax County, VA and a portfolio of six communities in Philadelphia, PA. It also plans to reduce leverage, including the redemption of Class A preferred stock callable in 2Q 2019.

Aimco announced its exit from the affordable housing business in 2011.

Related plans to preserve the long-term affordability of all 51 properties. “We have preserved tens of thousands of affordable housing units across the country and have never converted a single unit to market rate – a legacy we intend to extend to all of the 7,837 apartments in this portfolio,” said Matthew Finkle, president of Related Affordable, a division of Related Cos., said in a prepared statement when the deal was first announced in April.