(Read more on the multifamily market.)

DENVER-Apartment Investment and Management Co. has sold a minority stake in three of its West Los Angeles assets to a fund managed by JP Morgan Asset Management. The fund paid $202 million for a 47% stake in the 1,382-unit portfolio.

The properties involved in the transaction are Palazzo at Park La Brea, Palazzo East at Park La Brea and the Villas at Park La Brea. The combined value of the properties is $726 million. After deducting $296 million of debt on the properties the implied equity value is $430 million.

In addition to receiving $202 million, Apartment Investment Management also will operate the properties in exchange for a property management fee and certain other fees over the term of the JV.

Prior to the transaction, Apartment Investment Management considered itself over-allocated in the West Los Angeles market. The company’s chief executive David Robertson says the JV allows the company to “re-balance efficiently our geographic allocation of capital.”

Apartment Investment Management intends to use the proceeds from this transaction for general corporate purposes, including the repurchase of common stock under its approved share repurchase program. Using the proceeds to buy back shares at current market prices “is accretive to Aimco’s shareholders,” says company CFO Tom Herzog.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.