Aimco Acquires Full Ownership of Palazzo Multifamily Portfolio for $451.5M
The acquisition includes the 611-unit Palazzo East in the mid-Wilshire district of Los Angeles. (WikiMedia Commons/Architecturist)
LOS ANGELES — Apartment Investment and Management Company (Aimco) (NYSE: AIV) has acquired the remaining interest in a Los Angeles multifamily portfolio for $451.5 million. Aimco already owned 53 percent interest in the properties, and bought the remaining 47 percent from its joint venture partners, institutional investors advised by J.P. Morgan Asset Management.
The acquisition now gives Aimco complete ownership of three Palazzo communities. These include the 521-unit Palazzo at Park La Brea, the 611-unit Palazzo East and the 250-unit Villas at Park La Brea.
All three communities are situated in the mid-Wilshire area of Los Angeles, about two miles from Beverly Hills, Hollywood and Century City, and six miles from downtown LA and Santa Monica.
“We appreciate the mid-Wilshire submarket with its highly educated and high-income customers who value the proximity to transportation, job centers and upscale retail … and where we can see clearly that future development is increasingly difficult,” says Terry Considine, CEO and chairman of Aimco. “We expect to continue the operation of the properties and to redevelop each, over time and at the right time, to serve different and distinctive market segments.”
The average age of the units within the Palazzo portfolio is 12 years, with an average revenue per apartment of $3,525.
Aimco plans to fund the acquisition with $311 million in cash, pending the sale of several properties on the East Coast. The company plans to finance the remaining $140.5 million of the purchase price.
Denver-based Aimco is a REIT focused on the ownership and management of apartment communities. Aimco’s stock closed at $43.76 per share on Wednesday, July 5, 2017, up from $43.70 per share one year ago.
— Nellie Day