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PHOENIX-Apartment Investment & Management Co. is looking to sell 40% of its units in the Phoenix region. The Denver-based apartment REIT has listed for sale via CB Richard Ellis 1,635 units in five mid-1980s garden-style properties in the cities of Phoenix, Chandler, and Mesa.

The assets include Los Arboles and Vista del Lagos, two contiguous developments totaling 432 units in South Chandler; Pine Shadows, a 272 unit community in Tempe; Shadow Creek, a 266 unit community in Mesa; Woodcreek, a 432 unit community in Mesa; and Wickertree Apartments, a 226 unit community in Phoenix.

There are no asking prices for the properties, which are for sale both individually and as a portfolio. Offers are due Friday, March 20.

The disposition is part of a larger effort by Aimco to sell off $2 billion of market-rate and affordable properties over the next two years, mostly in non-target markets. Its non-target markets include Austin, Baltimore, Indianapolis, Nashville, Norfolk and Raleigh.

In 2008, the company sold 38,091 units in 155 properties for $2.58 billion ($67,732 per unit) in gross revenues. Of the 130 conventional (market rate) properties sold in 2008, 81 were in non-target markets and 49 were inferior locations within target markets. The average cap rate for conventional assets was 7.7% while average cap rate for affordable assets was 5.3%. The lower rate for affordable properties is because they “have embedded opportunities to increase rents over time,” Robertson told analysts.

“Looking forward, we plan to sell most of the $1.5 billion dollar balance of conventional properties located outside of our target markets as well as a significant number of affordable properties with the majority of these sales occurring in 2009 if market conditions allow,” Aimco chief investment officer David Roberston told analysts during a February conference call.

Phoenix is one of the company’s target markets, so the assets now for sale presumably are ones the company considers to be in inferior locations. Aimco has said Phoenix is one of six markets it operates in that will post “below-average revenue performance” in 2009 because it is one of the markets where “the housing bubble was pronounced and the shadow supply remains high,” according to SEC filings and the conference call.

Including the assets now for sale Aimco owns 4,065 units in 16 properties in the Phoenix market. Across all markets, the company owns an equity interest in 117,719 units in 514 properties.

A spokesperson for Aimco was unavailable Monday for comment. The listing broker, CBRE vice chairman Sean Cunningham, was away at a conference and unavailable Monday afternoon for comment. The following is a breakdown of each of the properties listed for sale including pro forma 2009 occupancy and NOI and any debt:

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