In January 2025, Aimco’s board of directors decided to explore alternatives to “unlock and maximize shareholder value” for the Denver-based REIT.
Aimco took one step in that direction earlier this month with the sale of a portfolio of five suburban Boston-area properties in Massachusetts, New Hampshire and Rhode Island, totaling 2,719 units, to an affiliate of Harbor Group International for $740 million, according to a news release.
HGI completed due diligence and made a $20 million nonrefundable deposit. Four of the five asset sales are expected to close during the third quarter of this year, while the final one is anticipated to close in the fourth quarter.
“The agreement to sell our suburban Boston portfolio represents another important step in our ongoing commitment to maximize and unlock value for Aimco shareholders,” company President and CEO Wes Powell said in the news release.
The five properties were built between 1970 and 1974, according to a news release from Harbor Group. Their unit interiors feature stainless steel appliances and hardwood flooring. Amenities across the properties include swimming pools, fitness centers, clubhouses and community green spaces.
As of July 2025, the portfolio was 95.7% occupied. Historical occupancy has averaged 97% since 2022.
"The addition of these communities will deepen HGI's presence within the Boston area, a market exhibiting robust multifamily fundamentals where we already have a strong operating footprint," said Yisroel Berg, chief investment officer of multifamily at HGI in Harbor Group’s news release.
Aimco’s next moves
Aimco remains on track to sell its Brickell Assemblage, which includes The Yacht Club Apartments and the adjacent 1001 Brickell Bay Drive office building, located in Miami, for $520 million, as announced in January.
During July, the buyer exercised its final closing extension option and increased its nonrefundable deposit by $7 million, bringing the total to $50 million. Closing is now scheduled for the fourth quarter of 2025.
Aimco expects to gain $1.26 billion in gross proceeds from the Boston and Brickell transactions. When accounting for associated property-level debt and the deferred tax liability related to the Brickell assets, net proceeds should be approximately $785 million, or $5.21 per common share.
Following the sales in Boston and Miami, Aimco’s remaining portfolio will comprise 18 apartment communities, containing 3,457 units. Those properties are concentrated in suburban Chicago and the Washington, D.C., metro area. The REIT also has three lease-up properties slated to be fully stabilized at the end of 2026.
Aimco is also developing a waterfront residential tower in Miami, which is on schedule for delivery in 2027, and a controlled development pipeline containing the potential for more than 3,700 new apartment homes, according to the news release.
Even after the Boston and Miami sales, Aimco will continue to explore further ways to maximize and unlock shareholder value through additional strategic transactions. Those could include the sale of additional components of the portfolio, individual asset sales or a sale or merger of the company. Morgan Stanley & Co. is serving as the REIT’s financial advisor through the process.
Aimco spun off from Denver-based Apartment Income REIT Corp. in December 2020. Last April, AIR and New York City-based investment manager Blackstone announced they had entered into an agreement for Blackstone Real Estate Partners X to acquire all outstanding common shares of AIR for approximately $10 billion, including the assumption of debt.
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