Aimco Enters Agreement to Sell Suburban Boston Apartment Portfolio for $740 Million, Remains Under Contract to Sell Brickell Assemblage in Miami for $520 Million

Rhea-AI Summary

Apartment Investment and Management Company (NYSE:AIV) has announced two major property sales totaling $1.26 billion. The company has entered into an agreement to sell its suburban Boston portfolio of five apartment properties (2,719 units) for $740 million to Harbor Group International, with closings expected in Q3-Q4 2025.

Additionally, Aimco remains under contract to sell its Brickell Assemblage in Miami for $520 million, with closing scheduled for Q4 2025. The combined transactions are expected to generate net proceeds of approximately $785 million, or $5.21 per share. The company plans to distribute the majority of proceeds to shareholders.

Post-sales, Aimco will retain 18 apartment communities with 3,457 units, primarily in suburban Chicago and Washington, D.C., expected to generate $90 million in annual NOI by year-end 2026.

Positive

• None.

Negative

• Significant reduction in portfolio size from sale of 2,719 units in Boston
• Retained portfolio will be more geographically concentrated in just two markets

News Market Reaction

-3.70%

1 alert

-3.70% News Effect

On the day this news was published, AIV declined 3.70%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DENVER, Aug. 6, 2025 /PRNewswire/ -- Apartment Investment and Management Company ("Aimco") has entered into a definitive agreement to sell its portfolio of five apartment properties, including 2,719 units, located in suburban Boston for $740 million to an affiliate of Harbor Group International, LLC. The buyer has completed due diligence and made a $20 million non-refundable deposit. Four of the five asset sales are expected to close during the third quarter of this year, with closing of the final asset expected in the fourth quarter.

Aimco President and CEO Wes Powell commented: "The agreement to sell our suburban Boston portfolio represents another important step in our ongoing commitment to maximize and unlock value for Aimco shareholders."

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 located in Miami, FL, for $520 million. During July, the buyer exercised its final closing extension option and increased its non-refundable deposit by $7 million, bringing the total non-refundable deposit to $50 million. Closing is now scheduled for the fourth quarter of 2025.

Gross proceeds from the Boston and Brickell transactions are expected to equal $1.26 billion. Net proceeds, when accounting for associated property-level debt and the deferred tax liability related to the Brickell assets, are expected to be approximately $785 million, or $5.21 per common share.

Aimco's remaining portfolio will include 18 apartment communities, containing 3,457 units, with concentrations in suburban Chicago and the Washington, D.C. Metro Area. These assets are expected to produce approximately $90 million of annual property net operating income (NOI) when three properties, currently in lease-up, are fully stabilized at year-end 2026. The retained portfolio commands average monthly rents of $2,574, $465 greater than the average of the Boston portfolio being sold, with an average age 17 years newer than that of the Boston portfolio.

In addition, Aimco's active development business includes a waterfront residential tower in Miami, FL which is 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.

Following the closings of the Brickell and Boston portfolio transactions, Aimco plans to distribute the majority of net proceeds to shareholders, consistent with our previously communicated capital allocation strategy.

Finally, with the support of Morgan Stanley & Co. LLC serving as the Company's financial advisor, Aimco remains focused on further maximizing and unlocking 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.

There can be no assurance that the continued efforts will result in any transaction or transactions or other strategic changes or outcomes, and the timing or outcome of any such event is similarly uncertain. Aimco does not intend to disclose or comment on developments related to the foregoing unless or until it determines that further disclosure is appropriate or required.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations. Words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "believe(s)," "may," "will," "would," "could," "should," "seek(s)," "forecast(s)," and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements, including those regarding the timing of asset sales and the timing and amount of capital expected to be returned to stockholders, are not guarantees of future performance, condition or results, and involve a number of known and unknown risks, uncertainties, and assumptions that may affect actual results or outcomes, including changes in market conditions, fluctuations in our stock price, our financial performance, regulatory changes, and general economic conditions. Readers should carefully review Aimco's financial statements and the notes thereto, as well as the section entitled "Risk Factors" in Item 1A of Aimco's Annual Report on Form 10-K for the year ended December 31, 2024, as these filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These forward-looking statements reflect management's judgment as of this date, and Aimco assumes no (and disclaims any) obligation to revise or update them to reflect future events or circumstances.

About Aimco

Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco's mission is to make real estate investments where outcomes are enhanced through its human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV. For more information about Aimco, please visit its website www.aimco.com.

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SOURCE Apartment Investment and Management Company (Aimco)

FAQ

What is the total value of Aimco's (NYSE:AIV) Boston and Brickell property sales in 2025?

The combined value of the sales is $1.26 billion, with $740 million for the Boston portfolio and $520 million for the Brickell Assemblage.

How much will Aimco shareholders receive from the Boston and Brickell sales?

Net proceeds are expected to be approximately $785 million, or $5.21 per common share, with the majority to be distributed to shareholders.

What will remain in Aimco's portfolio after the Boston and Brickell sales?

Aimco will retain 18 apartment communities with 3,457 units, primarily in suburban Chicago and Washington, D.C., expected to generate $90 million in annual NOI by year-end 2026.

When are the Aimco property sales expected to close?

Four of the five Boston properties are expected to close in Q3 2025, with the final Boston property and Brickell sale closing in Q4 2025.

What is the average rent difference between Aimco's retained portfolio and the Boston properties being sold?

The retained portfolio commands average monthly rents of $2,574, which is $465 higher than the average of the Boston portfolio being sold.