Apartment Investment and Management Company ("Aimco") (NYSE: AIV) provided today a mid-quarter update to its portfolio management activities and rental rate trends.

Madera Vista with a view of Corte Madera, Tiburon, and San Francisco Bay (Photo: Business Wire)

Madera Vista with a view of Corte Madera, Tiburon, and San Francisco Bay (Photo: Business Wire)

PORTFOLIO MANAGEMENT

Since June 30, 2011, Aimco has sold eight Conventional properties and four Affordable properties with 2,179 and 286 units, respectively, for $133 million in gross proceeds. Aimco's share of net proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $59 million.

During August 2011, Aimco acquired Madera Vista, a strategic redevelopment asset located in San Francisco's Marin County submarket, from a fund sponsored by Rockpoint Group and an entity owned by Robert Rosania, Chief Executive Officer of Stellar Management. Consistent with Aimco's portfolio management strategy, the acquisition of Madera Vista was funded in part by equity raised through the sale of lower rated assets, as well as by $40 million of 10-year, non-recourse, fixed rate property debt, which is rate locked at 4.60% and is anticipated to close in October, 2011. This vacant 126-unit property has unobstructed views of San Francisco Bay and Mount Tamalpais, and direct access to nearby nature preserves. Aimco plans to begin redevelopment of the asset in the next four to six months, which will bring Aimco's total investment in the property to approximately $65 million. Madera Vista is located approximately 25 miles north of Aimco's Pacific Bay Vistas property, formerly known as Treetops, which will also be undergoing significant redevelopment.

Terry Considine, Chairman and Chief Executive Officer, comments, "Madera Vista is in an irreplaceable location in a target market where we are working to increase our capital allocation. Redevelopment is a core business activity for Aimco, which makes this an opportunity well suited to Aimco."

Aimco also increased its investment in San Diego, another target market, by acquiring approximately one half of the ownership of four entities owning four contiguous properties with 142 units located in La Jolla, California and overlooking Tourmaline Beach.

RENTAL RATES

Aimco measures changes in rental rates by comparing, on a lease-by-lease basis, the rate on a newly executed lease to the rate on the expiring lease for that same apartment. Newly executed leases are classified as either a new lease, where a vacant apartment is leased to a new customer, or a renewal of an existing lease. Average increases in Conventional Same Store new lease and renewal rental rates through August 2011, are as follows:

     

FIRST

     

SECOND

     

 

     

 

     

YEAR-TO-

       

QUARTER

     

QUARTER

     

JULY

     

AUGUST

     

DATE

New lease       1.9%       5.1%       7.1%       6.9%       4.9%
Renewal       3.0%       3.6%       4.4%       5.0%       3.8%
 

Aimco is a real estate investment trust that is focused on the ownership and management of quality apartment communities located in the 20 largest markets in the United States. Aimco is one of the country's largest owners and operators of both conventional and affordable apartments, with 607 communities serving approximately 500,000 residents in 38 states, the District of Columbia and Puerto Rico. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.

Rockpoint Group, L.L.C. ("Rockpoint") is a global real estate investment management firm headquartered in Boston. The Firm employs a fundamental value approach and targets investments across a variety of asset classes and select geographic regions, with a primary focus on the United States and with a secondary emphasis on Japan and Western Europe. Since its inception in 2003, Rockpoint has sponsored five private investment funds and three co-investment vehicles with capital commitments of approximately $6 billion.

Stellar Management is an owner-manager of more than 24,000 apartment homes and 3 million square feet of office space in the Bay Area, New York City, Metro Washington D.C., Los Angeles, Chicago and South Florida. Stellar Management employs about 800 people and has offices and management teams based in San Francisco, New York and Metro DC.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50006366&lang=en

Apartment Investment and Management Company
Elizabeth Coalson, 303-691-4327
Vice President Investor Relations
or
Investor Relations, 303-691-4350
Investor@aimco.com