Apartment Investment and Management Company, better known as Aimco, is preparing to go out of business.
The Denver-based multifamily owner and operator announced plans to sell off all of its assets across the country, Bisnow reported. It’s the conclusion to a nearly year-long saga that began after the firm started a strategic review of options in January.
Aimco has seemingly seen the writing on the wall for some time, selling off properties across the country and shaving down its holdings to just 15 assets in New York, Georgia, Illinois, California, Tennessee and Florida. The company recently delivered three developments and is also building a luxury apartment complex in Miami that’s set for completion in 2027.
The review process involved Aimco speaking with more than 100 firms, including financial sponsors, investment managers, public real estate investment trusts and private real estate firms. This year alone, the company saw a 1.9 percent decline in property net operating income compared to last year; at the same time, property expenses increased 1.1 percent and average occupancy fell from the prior quarter to 94.8 percent.
The board of Aimco unanimously came to the decision to shut down after “thoroughly [exploring] various strategic alternatives” with other entities. “The voluntary and orderly liquidation of the company’s remaining assets is most likely to result in the greatest value for shareholders as compared to other alternatives,” Pat Gibson, chair of Aimco’s investment committee, said in a statement.
Aimco plans to have shareholders vote on its liquidation proposal early next year. If it gets the go-ahead, the public real estate firm would be able to more swiftly sell assets and return the proceeds to shareholders after paying off any of Aimco’s liabilities and obligations. Aimco has lost more than 30 percent of its stock value this year. At the end of September, it had $404 million in cash on hand and $748M in debt, including mortgages backing properties.
Recent Aimco sales include a deal in August to sell five New England residential communities to Harbor Group International for $740 million. It’s also under contract to sell a multifamily and office assemblage on the Miami waterfront for $520 million; that deal is set to close next month in what would be a record sale for the seaside city.
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