DENVER--(BUSINESS WIRE)--Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) today announced that it has acquired the Bent Tree apartment community in Fairfax County, VA for $160 million, resulting in an expected $0.01 per share increase to Adjusted Funds From Operations in the first 12 months of ownership.
Bent Tree, a property with 748 apartment homes, is located in suburban Fairfax County near two other Aimco communities with 1,000 apartment homes. Bent Tree has average rents of approximately $1,500 per unit, making this a “B” quality community, with the potential for greater than market rate revenue growth through in unit capital enhancements.
“We are pleased to add Bent Tree to the Aimco portfolio, increasing our exposure to the attractive Fairfax County submarket,” said Aimco Chairman/CEO Terry Considine. “Located within commuting distance of downtown D.C. and just minutes from Dulles International Airport, Bent Tree offers residents convenient access to employment while also providing comfortable homes and onsite amenities that support their suburban lifestyle.”
Consistent with its paired trade discipline, Aimco plans to sell an equivalent value of apartment communities with lower expected free cash flow internal rates of return (“FCF IRR”) and lower rental growth prospects. Although the specific communities to be sold will depend on pricing, Aimco expects the FCF IRR of Bent Tree to exceed by at least 300 bps the FCF IRR of the properties sold to fund the acquisition.
The acquisition was funded with bank borrowings pending the expected third quarter sales to complete the paired trade funding.
Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States. Aimco is one of the country’s largest owners and operators of apartments, with ownership interests in 180 communities in 22 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.