Aimco Completes $314-Mil Deal for Balance of Oxford Realty Financial Group

DENVER-Apartment Investment and Management Co., based here, has secured the balance of Oxford Realty Financial Group Inc., an apartment REIT for which it already operates 165 of its 166 holdings, plus some of its stock. The $314-million deal transfers cash and more securities.

Aimco’s affiliate holds long-term contracts and stock in some Oxford communities, totaling 36,662 units in 18 states. The communities are owned by 166 separate partnerships and are subject to a total of $1.4 billion in mortgages, with Oxford’s pro-rata share standing at $555 million.

Aimco has paid $252 million in cash and $62 million in Aimco shares, valued at $45 per unit. Aimco also has covered about $19 million in transaction costs. Bank of America and Lehman Brothers are funding the cash portion of the purchase agreement with an interim credit line. Aimco expects to replay the loan from scheduled property refinancing, expected property sales and internal cash flow.

In addition to the Oxford Properties, Aimco has acquired the entity that owns the managing general partner position in Oxford Tax-Exempt Fund II, LP, which holds tax-exempt bondssecured primarily by mortgages on certain of the Oxford Properties. In a separate transaction, Aimco has acquired options to purchase approximately 650,000 of the affiliate securities, representing nearly a 9% limited partnership interest.