Related Companies, one of the largest owners of affordable housing in the United States, today announced it is acquiring 7,837 affordable housing units from Apartment Investment and Management Company (“Aimco”) (NYSE: AIV). Related Affordable, the affordable housing division of Related Cos., has entered into a binding agreement to purchase Aimco’s Asset Management portfolio and four affordable real estate communities for $590 million. The units involved in the transaction are located across 51 properties in 16 states, and includes the Hunters Point communities, four affordable, garden-style communities, with 604 apartment homes located in San Francisco, CA.
“The development and preservation of affordable housing has been a cornerstone of Related’s business for more than 40 years,” said Matthew Finkle, President of Related Affordable, a division of Related Companies. “We have preserved tens of thousands of affordable housing units across the country and have never converted a single unit to market rate – a legacy we intend to extend to all of the 7,837 apartments in this portfolio. At Related, we believe affordable housing is a priority for building strong communities and we look forward to working with other property owners and managers like Aimco, as well as local and state governments throughout the country, to continually expand our preservation efforts so we can continue to provide affordable housing to the thousands of Americans who call our properties home.”
“This transaction simplifies the Aimco business and completes the planned exit from the affordable housing business that we announced in 2011,” said Aimco Chairman/CEO Terry Considine. “The completion of this transaction will be accretive to Aimco’s Net Asset Value by $126 million while preserving affordable housing through its transfer to a long-term, high quality operator of affordable assets.”
Related plans to preserve the 51 properties as affordable. Once the closing of this transaction is complete, which is anticipated to occur in the third quarter of 2018, Related will begin implementing preservation plans for each property.
Related Affordable is known for its commitment to community building not only within its individual properties, but in the larger neighborhoods its buildings inhabit. Through its property rehabilitation work, Related has built community centers and common areas to house afterschool programs, as well as job training and adult literacy courses.
Through its private-public partnerships, Related Affordable has also helped administer local scholarship programs, and even helped an inner-city school build a field so its students could enjoy recess and after-school sporting events for the first time. Read More…