Aimco’s Formation of Apartment Income REIT and $2.4 Billion Joint Venture

Skadden, Arps, Slate, Meagher & Flom LLP advised APARTMENT INVESTMENT AND MANAGEMENT COMPANY (“Aimco”) on the deal.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY (“Aimco”) announced its plan to separate its business into two, separate and distinct, publicly traded companies, Apartment Income REIT (“AIR”) and Aimco.

AIR, a newly formed, self-managed real estate investment trust will provide a simple and transparent way to invest in the multi-family sector: ownership with public market liquidity of a diversified portfolio of apartment communities, with low financial leverage, limited execution risk, best-in-class operations, and sector low management costs.

Aimco also announced, as part of its longer-term strategy to reduce financial leverage and to rebalance its capital allocation among target markets, that it has entered into a ten-year joint venture with a passive institutional investor to own jointly 12 multi-family properties with 4,051 units located in California. The properties were valued at $2.4 billion, or approximately $592,000 per unit.

Citigroup Global Markets Inc. served as lead financial advisor. J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC also provided financial advisory services to the company in connection with the transaction.

Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in the largest markets in the United States. Aimco is one of the country’s largest owners and operators of apartments, with 125 communities in 17 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV and are included in the S&P 500.

The Skadden team included M&A partners Joseph Coco (New York; Picture), Blair Thetford (New York) and Meryl Chae (Los Angeles); Capital Markets partner Michelle Gasaway (Los Angeles); and Tax partner David Polster (Chicago).

Involved fees earner: Meryl Chae – Skadden Arps Slate Meager & Flom; Joseph Coco – Skadden Arps Slate Meager & Flom; Michelle Gasaway – Skadden Arps Slate Meager & Flom; David Polster – Skadden Arps Slate Meager & Flom; Blair Thetford – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: Apartment Investment and Management Company;

Author: Ambrogio Visconti