Aimco To Sell Miami Multifamily, Land Assets In $204M Deal
Denver-based REIT Apartment Investment and Management Co. is set to offload two Miami assets in a $204M deal.
The pending sales include a 28-story, 276-unit waterfront apartment tower and a nearby development site in Miami’s Edgewater neighborhood. The transaction is expected to close by the end of the year, according to a press release first reported by the South Florida Business Journal.
The Hamilton apartment tower at 555 NE 34th St. is under contract for $190M with an unnamed buyer that has put down a nonrefundable deposit, according to Aimco. An unnamed joint venture partner will buy the REIT’s interest in the 2.8-acre site at 3333 Biscayne Blvd. for $13.8M on a gross valuation of $66.5M.
"The pending sale of the Edgewater assets will crystallize the value created during Aimco's ownership and, in alignment with our previously stated capital allocation plans, will allow for a meaningful return of capital to Aimco stockholders," Aimco President and CEO Wes Powell said in the release.
Aimco’s second-quarter earnings report said the company had recently invested $29.8M in development and redevelopment, primarily across three major markets: Colorado’s Front Range, southeast Florida and the Washington, D.C., area. Most of the funding came through construction draw loans, the company said.
Aimco snapped up the 40-year-old Hamilton tower, with units now priced between $3,834 and $16,017 per month, for $81M in 2020, the SFBJ reported. Renovations forced all tenants to temporarily move out of the building.
Aimco had big plans for the Biscayne development site, the SFBJ reported, including three connected towers with 653 apartments, 1,210 parking spots, 156K SF of office space and 19K SF for retail.
The unnamed partner in that project could be New York-based asset management firm Beitel Group, according to the SFBJ. Beitel was included in the original 2022 site plan and still has the project listed on its website.
Aimco said it is also making progress on selling properties in Miami’s Brickell neighborhood, including 1001 and 1111 Brickell Bay Drive.
Aimco’s evolving strategy follows its 2020 decision to spin off many of its high-end apartment assets into a separate entity, Apartment Income REIT, which went private in a $10B deal with Blackstone. The proceeds from these Miami sales are expected to help Aimco retire about $110M in debt and return approximately $90M to shareholders by early 2025, the company said.
