Apartment Investment and Management Company (AIMCO) has closed on the acquisition of a six property multifamily portfolio in the greater Philadelphia area for $445 million. Purchased from Dranoff Properties, the sale includes the 1,116 units that cost an average of $398,745 each. Included in the transaction is 185,000 square feet of office and retail space. AIMCO will fund the acquisition using $290 million in property debt, $65 million borrowed from AIMCO’s bank line as well as $90 million in operating partnership units. The firm also plans to sell existing properties to raise funds for the purchase. Once the deal is completed, AIMCO will own 3,208 units in the Philadelphia area, accounting for approximately 10 percent of its gross asset value. The deal is expected to close in the second quarter of this year, except for the purchase of one property that is expected to close in the first half of 2019.
“Over the past 20 years, we’ve developed and assembled a portfolio of rental properties that has redefined luxury living in the Philadelphia region. With a pipeline of new and exciting projects on the horizon, the timing is right to sell six of our premier properties to AIMCO and become a major investor in the company,” said Carl Dranoff, founder & CEO of Dranoff Properties.
