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Sign in Sign up for a FREE subscriptionAIR Communities forms two JVs, totaling $1.2b in value
Apartment Income REIT Corp. has formed joint ventures with two of the world’s largest real estate investors to recapitalize 11 properties valued at an aggregate of $1.2 billion based on a trailing 12-month NOI cap rate of 5.6 percent. AIR will receive $600 million in proceeds (cash and debt relief), as well as asset and property management fees expected to contribute $2.5 million in annual margin. Upon completion of the transactions, AIR total indebtedness to EBITDA will be less than 6:1, providing capacity for accretive acquisitions.
In the first joint venture, AIR will own a 53 percent interest in the partnership and a global institutional investor will own 47 percent. The portfolio comprises 10 properties in AIR’s Same Store portfolio, with 3,093 apartment homes with monthly revenue averaging $2,457, located in Philadelphia, Denver, San Diego, south Florida and Washington (D.C.).
In the second joint venture, AIR will own a 30 percent interest in the partnership
