Apartment Investment and Management Company (“Aimco”) and Related Affordable enter into a binding agreement for the purchase of Aimco’s asset management portfolio and four affordable real estate communities for $590 million.
Related Companies, one of the largest owners of affordable housing in the United States, today announced it is acquiring 7,837 affordable housing units from Apartment Investment and Management Company (“Aimco”) (NYSE: AIV). Related Affordable, the affordable housing division of Related, has entered into a binding agreement to purchase Aimco’s asset management portfolio and four affordable real estate communities for $590 million. The units involved in the transaction are located across 51 properties in 16 states, and include the Hunters Point communities—four affordable, garden-style communities with 604 apartment homes located in San Francisco, CA.
“The development and preservation of affordable housing has been a cornerstone of Related’s business for more than 40 years,” said Matthew Finkle, president of Related Affordable, a division of Related Companies. “We have preserved tens of thousands of affordable housing units across the country and have never converted a single unit to market rate—a legacy we intend to extend to all of the 7,837 apartments in this portfolio. At Related, we believe affordable housing is a priority for building strong communities and we look forward to working with other property owners and managers like Aimco, as well as local and state governments throughout the country, to continually expand our preservation efforts so we can continue to provide affordable housing to the thousands of Americans who call our properties home.”
“This transaction simplifies the Aimco business and completes the planned exit from the affordable housing business that we announced in 2011,” said Aimco Chairman and CEO Terry Considine. “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.” Related plans to preserve the 51 properties as affordable. Once the closing of this transaction is complete, which is anticipated to occur in the third quarter of 2018, Related will begin implementing preservation plans for each property. Related Affordable is known for its commitment to community building, not only within its individual properties, but in the larger neighborhoods that its buildings inhabit.
Through its property rehabilitation work, Related has built community centers and common areas to house after school programs, as well as job training and adult literacy courses. Through its private-public partnerships, Related Affordable has also helped administer local scholarship programs, and even helped an inner-city school build a field so that its students could enjoy recess and after school sporting events for the first time.
Related Companies is the most prominent privately-owned real estate firm in the United States. Formed over 40 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington, D.C., Abu Dhabi and London, and boasts a team of over 3,500 professionals. With over $50 billion in assets owned or under development including the 28-acre Hudson Yards neighborhood development on Manhattan’s West Side, Related was recently named to Fast Company Magazine’s list of the 50 Most Innovative Companies in the World. For more information about Related, please visit www.related.com.
About Related Affordable:
Related Affordable is the division of Related Companies that develops, acquires and preserves affordable housing throughout the nation. Affordable housing laid the foundation of Related Companies, and its broad portfolio of award-winning affordable and mixed-income developments demonstrates the company’s continuing ability to create affordable housing opportunities in a variety of geographically, economically and socially diverse neighborhoods. Related owns and operates a portfolio of more than 45,000 affordable and workforce housing units.
Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States. Aimco is one of the country’s largest owners and operators of apartments, with ownership interests in 180 communities in 22 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.
Suzanne Sorkin, Investor Relations