AIR Communities Announces Two JVs Valued at $1.2B

The JV partners are committed to additional investments.

By Barbara Ballinger | June 06, 2023 at 04:38 PM

Apartment Income REIT announced two joint ventures with two major real estate investors to recapitalize 11 properties valued at $1.2 billion. AIR will receive $600 million in proceeds consisting of cash and debt relief as well as asset and property management fees that are expected to contribute $2.5 million in annual margin.

When the transactions are completed, AIR’s total indebtedness to its earnings before interest, taxes, depreciation and amortization or EBITDA, will be less than 6:1, which will provide capacity for gradual acquisitions. AIR’s portfolio currently consists of 75 communities with close to 26,000 apartment homes in 10 states and the District of Columbia.

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