Aimco Selling New England Multifamily Properties for $740M

Denver-based real estate investment trust Aimco is getting out of the New England multifamily market.

The REIT is in contract to sell five apartment properties to Harbor Group International for a total $740 million, the company announced on Wednesday. Deals for four of the five assets are expected to close this quarter, and the other is expected to close in the fourth quarter.

HGI has already put down a $20 million non-refundable deposit in the deal, which includes 2,719 units across the portfolio. The announcement didn’t specify the properties being traded, but Aimco’s website only lists five assets in the region: Royal Crest Estates properties in Nashua, New Hampshire, Warwick, Rhode Island and Marlborough, Massachusetts; Waterford Village in Bridgewater, Massachusetts and Wexford Village in Worcester, Massachusetts.

The firm also has a pending sale of an assemblage in Miami’s Brickell neighborhood. Along with the sale of the Boston-area properties, the deals are expected to generate $785 million, or $5.21 per common share, after debt and deferred tax liability are taken into account. Aimco expects to distribute the majority of proceeds to its shareholders.

Aimco’s stock opened on Thursday at $8.80 per share, but was down to $8.60 per share as of about 2:00 pm ET. The stock is down nearly 5 percent year-to-date.

With the sale, Aimco will only have a dozen and a half apartment communities left in its portfolio, largely centered around Chicago and Washington, D.C. The average monthly rent across the portfolio is $2,574.
This year, HGI purchased an apartment complex in the Dallas-Fort Worth master-planned community of Canyon Falls with a $42.2 million loan. The investor is based in Norfolk, Virginia.