Apartment Investment and Management Company (Aimco), a Denver-based multifamily real estate owner and operator, is preparing to cease operations. The company announced plans to sell all of its remaining assets nationwide, following a strategic review that began in January.
Over the past year, Aimco has reduced its portfolio significantly, selling properties across the country. It now holds only 15 assets located in New York, Georgia, Illinois, California, Tennessee, and Florida. Recently completed developments include three new projects and an ongoing luxury apartment complex in Miami scheduled for completion in 2027.
As part of its strategic review process, Aimco engaged with over 100 entities such as financial sponsors, investment managers, public real estate investment trusts (REITs), and private real estate firms. This year has seen a 1.9 percent decrease in property net operating income compared to last year. At the same time, property expenses increased by 1.1 percent and average occupancy dropped to 94.8 percent from the previous quarter.
The decision to wind down operations was made unanimously by Aimco’s board after evaluating several alternatives. “The voluntary and orderly liquidation of the company’s remaining assets is most likely to result in the greatest value for shareholders as compared to other alternatives,” said Pat Gibson, chair of Aimco’s investment committee.
Shareholders are expected to vote on the proposed liquidation early next year. If approved, Aimco would proceed with asset sales and distribute proceeds to shareholders after settling liabilities and obligations. So far this year, Aimco’s stock value has declined by more than 30 percent. As of September’s end, it reported $404 million in cash reserves against $748 million in debt.
Recent transactions include an August deal where five residential communities in New England were sold to Harbor Group International for $740 million. Another pending transaction involves a multifamily and office assemblage on Miami’s waterfront under contract for $520 million; if finalized next month as planned, it would set a record sale price for Miami.
— Chris Malone Méndez
