US multifamily real estate firm Apartment Investment and Management Company is selling a $740m (€634m) portfolio to an affiliate of Harbor Group International (HGI) as part of a planned $1.26bn divestment of assets across two separate transactions.
The firm has agreed to sell the 2,719-unit portfolio of five apartment properties located in suburban Boston to HGI, and has also agreed to sell its Brickell Assemblage, which includes The Yacht Club Apartments and the adjacent 1001 Brickell Bay Drive office building located in Miami, Florida to an unnamed buyer for $520m.
Yisroel Berg, CIO of multifamily at HGI, said: “The addition of these communities will deepen HGI’s presence within the Boston area, a market exhibiting robust multifamily fundamentals where we already have a strong operating footprint.
“With limited new supply in the surrounding areas of each property, we will be well positioned to leverage our local market knowledge to maintain stable occupancy levels and implement targeted renovations that enhance the resident experience.”
Wes Powell, president and CEO of Apartment Investment, said: “The agreement to sell our suburban Boston portfolio represents another important step in our ongoing commitment to maximise and unlock value for [Apartment Investment] shareholders.”
NYSE-listed Apartment Investment said it expects net proceeds of $785m, or $5.21 per common share, after accounting for associated property-level debt and the deferred tax liability related to the Brickell assets. The company plans to distribute the majority of the net proceeds to its shareholders, in line with its previously announced capital allocation strategy.
Once the transactions are completed, Apartment Investment’s remaining portfolio will include 18 apartment communities, containing 3,457 units, with concentrations in suburban Chicago and the Washington, DC Metro Area.
The company’s development business includes a waterfront residential tower in Miami, Florida, currently under construction.
Apartment Investment said it will continue to focus on maximising shareholder value through strategic transactions like selling more parts of its portfolio, individual asset sales, or even by selling or merging the entire company.
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