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Aimco in deal for 6 Philadelphia-area apartment communities

Published 04/16/2018, 04:32 PM
© Reuters.  Aimco in deal for 6 Philadelphia-area apartment communities
  • Four of the properties are in the Philadelphia city limits, one is in Camden, and one (currently under development) is in Lower Merion.
  • It's a total of 1,116 units, and Aimco (NYSE:AIV) is paying $445M. The seller is Carl Dranoff.
  • Funding will be the taking on of $290M in existing property debt, $65M in new borrowings, and $90M in Aimco operating partnership units issued at a NAV of $53 each.
  • Alongside this deal and inline with company strategy to keep leverage in check and exit lower-rated properties, Aimco plans to sell Chestnut Hill Village and its 704-units.
  • The deal is expected to increase future expected IRR by about 150 basis points. After the purchases and sale, Aimco will own 3,208 units in the Philadelphia area, or about 10% of its GAV (up from 8% today).
  • Source: Press Release
  • Now read: Apartment Investment (AIV) Presents At The 2018 Citi Global Property CEO Conference - Slideshow


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