Apartment Investment and Management Co. (Aimco) has sold its Asset Management portfolio and four affordable real estate communities to Related Cos.’s affordable division for $590 million.
Closing of this transaction, which is anticipated to occur in the third quarter of 2018, will complete Aimco’s planned exit from its affordable housing line of business.
The Asset Management portfolio is a fee-based business in which Aimco is the general partner in partnerships owning interests in low-income housing tax credit apartment communities. As general partner, Aimco provides asset management and other services to these partnerships and receives fees and other payments in return. The sale also includes the Hunters Point communities, four affordable, garden-style communities, with 604 apartment homes located in San Francisco.
“This transaction simplifies the Aimco business and completes the planned exit from the affordable housing business that we announced in 2011,” said Terry Considine, Aimco chairman/CEO. “The completion of this transaction will be accretive to Aimco’s net asset value by $126 million while preserving affordable housing through its transfer to a long-term, high-quality operator of affordable assets
