Denver-based multifamily owner and operator announced plans to sell all of its assets across the country, Bisnow reported. It is the conclusion of a nearly year-long saga that began after the company began a strategic review of its options in January.
Aimco has seemingly seen the writing on the wall for some time, selling off properties across the country and reducing its holdings to just 15 assets in New York, Georgia, Illinois, California, Tennessee and Florida. The company recently completed three projects and is also building a luxury apartment complex in Miami that should be completed in 2027.
During the review process, Aimco spoke with more than 100 companies, including financial sponsors, investment managers, public real estate investment trusts and private real estate companies. This year alone, the company saw a 1.9 percent decline in net real estate operating income compared to last year; At the same time, real estate costs increased by 1.1 percent and the average occupancy rate fell compared to the previous quarter to 94.8 percent.
The Aimco board unanimously decided to close after “thoroughly”. [exploring] “The voluntary and orderly liquidation of the company’s remaining assets will most likely result in the greatest value to shareholders compared to other alternatives,” Pat Gibson, chairman of Aimco’s investment committee, said in a statement.
Aimco plans to let shareholders vote on its liquidation proposal early next year. If given the green light, the public real estate company would be able to sell assets more quickly and return proceeds to shareholders after Aimco’s debts and liabilities are paid off. Aimco has lost more than 30 percent of its share value this year. At the end of September, the company had $404 million in cash and $748 million in debt, including mortgages to back properties.
Recent Aimco sales include a deal in August to sell five New England residential communities to Harbor Group International for $740 million. It is also under contract to sell a multifamily and office building on Miami’s waterfront for $520 million; that deal will close next month in what would be a record sale for the seaside city.
— Chris Malone Mendez
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