Aimco Agrees to Sell Boston and Miami Properties for $1.26 Billion, Plans to Return $785 Million to Shareholders

Aimco has entered agreements to sell its suburban Boston apartment portfolio for $740 million and remains under contract to sell its Brickell Assemblage in Miami for $520 million. The sales are expected to yield net proceeds of $785 million, translating to $5.21 per share, which Aimco plans to distribute to shareholders. After the sales, Aimco's retained portfolio is expected to generate an annual NOI of $90 million by 2026.

Apartment Investment and Management Company (Aimco) has entered into agreements to sell its suburban Boston apartment portfolio and remains under contract to sell its Brickell Assemblage in Miami, generating significant financial benefits for the company and its shareholders. The transactions, totaling $1.26 billion, are expected to yield net proceeds of approximately $785 million, translating to $5.21 per share. Aimco plans to distribute the majority of these proceeds to shareholders, aligning with its previously communicated capital allocation strategy [1].

The suburban Boston portfolio, consisting of five properties with 2,719 units, has been sold to an affiliate of Harbor Group International for $740 million. The sale includes a $20 million non-refundable deposit, with four of the five asset closings expected during the third quarter of 2025, and the final asset expected to close in the fourth quarter [1]. Aimco's President and CEO, Wes Powell, commented that this sale represents another important step in maximizing shareholder value.

In addition, Aimco remains under contract to sell its Brickell Assemblage, which includes The Yacht Club Apartments and the adjacent 1001 Brickell Bay Drive office building in Miami, for $520 million. The buyer exercised its final closing extension option and increased its non-refundable deposit by $7 million, bringing the total to $50 million. Closing for this transaction is now scheduled for the fourth quarter of 2025 [1].

Following these sales, Aimco's retained portfolio will include 18 apartment communities with 3,457 units, primarily located in suburban Chicago and the Washington, D.C. Metro Area. These assets are expected to generate approximately $90 million in annual property net operating income (NOI) by year-end 2026. The retained portfolio commands average monthly rents of $2,574, significantly higher than the average of the Boston portfolio being sold, and is 17 years newer in terms of average age [1].

Aimco's active development business also includes a waterfront residential tower in Miami, currently under construction and on schedule for delivery in 2027, along with a controlled development pipeline containing the potential for more than 3,700 new apartment homes [1].

The company's financial advisor, Morgan Stanley & Co. LLC, supports Aimco's continued efforts to maximize and unlock shareholder value through additional strategic transactions, which may include the sale of additional components of the portfolio, individual asset sales, or a sale or merger of the Company as a whole [1].

References:
[1] https://www.prnewswire.com/news-releases/aimco-enters-agreement-to-sell-suburban-boston-apartment-portfolio-for-740-million-remains-under-contract-to-sell-brickell-assemblage-in-miami-for-520-million-302523644.html
[2] https://www.stocktitan.net/news/AIV/aimco-enters-agreement-to-sell-suburban-boston-apartment-portfolio-68hrcwnbgrh0.html
[3] https://finance.yahoo.com/news/aimco-enters-agreement-sell-suburban-202400165.html