Aimco acquires Bent Tree apartment community for $160M
Apartment Investment and Management Company announced that it has acquired the Bent Tree apartment community in Fairfax County, VA for $160M, resulting in an expected 1c per share increase to Adjusted Funds From Operations in the first 12 months of ownership. Bent Tree, a property with 748 apartment homes, is located in suburban Fairfax County near two other Aimco communities with 1,000 apartment homes. Bent Tree has average rents of approximately $1,500 per unit, making this a "B" quality community, with the potential for greater than market rate revenue growth through in unit capital enhancements. Consistent with its paired trade discipline, Aimco plans to sell an equivalent value of apartment communities with lower expected free cash flow internal rates of return and lower rental growth prospects. Although the specific communities to be sold will depend on pricing, Aimco expects the FCF IRR of Bent Tree to exceed by at least 300 bps the FCF IRR of the properties sold to fund the acquisition. The acquisition was funded with bank borrowings pending the expected third quarter sales to complete the paired trade funding.