Apartment Investment and Management Co. (Aimco) will be working with Alaska Permanent Fund Corp. (APFC) to build up to $1 billion worth of multifamily developments. The joint venture between Aimco and APFC is planning to build communities in certain growth markets across the U.S.
APFC will fund up to $360 million of limited partner equity into projects that meet specific criteria, which will be determined by return thresholds, minimum project size and other specifications. In the joint venture, Aimco will act as the general partner and developer, but will also commit to at least $40 million through funding or the contribution of assets. Park Madison Partners was the exclusive advisor for Aimco, while RCLCO Fund Advisors served as exclusive advisor to APFC on the joint venture transaction.
On its own, Aimco currently has a development pipeline with the potential to construct more than 15 million square feet. The pipeline is primarily located in high-growth submarkets in the South Florida, Washington, D.C. and Denver metros. Matthew Foster, senior director of capital markets and investor relations at Aimco, told MHN that Aimco’s current pipeline does include some projects that would qualify for the joint venture and others that don’t, adding that there aren’t any specific projects related to the joint venture yet.
PROJECTS TO BE DETERMINED
Lynn Stanfield, CFO at Aimco, said in prepared remarks that the company and APFC have similar commitments to investing into multifamily developments in high-growth U.S. markets. Foster told MHN that Aimco’s development pipeline is grown around its Los Angeles, Denver, Washington, D.C. and Southern Florida metros because the company has offices in those markets, but added that there’s no geographic boundaries for the company.
Aimco also recently formed a new entity called Apartment Income REIT that would help separate Aimco’s investments division and its development and management side. Aimco itself, which will be partnering with APFC, will focus on developing and redeveloping apartment projects, while the REIT will manage the majority of a 98-property portfolio.