Aimco

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, a group managed by Sam purchased Captiva Club off Memorial Highwayfor $19.r5 million from the Aimco subsidiary Captiva Club JV LLC. That was the thirdx property Aimco has sold this past year in the TampqBay area, according to , including the $23 million sale of Legendes Oaks in Central Tampa. Addint Captiva Club to the mix, Aimco AIV) already has sold 1,128 units so far this year for $63.5 million, or $56,400 per unit. And the company isn’t done. Aimco’s Web site shows it has five othetr properties for sale in the TampaBay area, part of nearlyg 140 properties nationwide it is looking to Its motivations are a mystery.
John senior VP for who helped broker the Captiva Club deal and who is listed as the agent for the five other Tampzaarea properties, said he couldn’t talk abouf it. Neither could Cindy Duffy, Amico’a corporate communications director. Hachem, the buyer of Captivqa who also bought the community in Clearwatedr overthe summer, could not be reached for comment. Finding an exit?? The Captiva complex was built in 1970 but underwen t what Aimco describedas “significant in 1998 shortly before it was purchase for $15.8 million, according to the Hillsborough Countg Property Appraiser’s office. Rents at Captiva average about $1.
01 a square foot, well above the 91 cents per squaree foot average in the Tampa Northwest submarket, according to Real Data Apartment Market The complex generates a net operatinv income of $1.9 million, says a pro formqa published by Aimco. That’s almost nothing, however, compareed to another property where Aimco hasa “for sign posted. Fisherman’s Landing in Temple Terrace isdemandingt $1.10 per square foot, above the 89.8 centsd average for that generating a net income of $1.4 million. Aimcko purchased that property in 1998for $11 million, or $43,000 per but its current assessed tax value is $14.89 million.
Cushman & Wakefield’s second quarterd report said transaction volume was off 40 percenrt asof July, at $277 million. Half of thos e sales involved Aimco, and if the REIT is successfuk in selling its remaining complexes in the Bay it could seeanother $80.5 million in local revenue if sold at $55,00 per unit. But multifamily complex owners aren’t out to simplh cash in on a big return, said Steven a regional managerfor . “This is not necessarily a profit-takinbg market,” Ekovich said.
“This is really more of a strategy-driven, or event-driven sale Those events could manifest asa cash-flow or a loan coming due, or simplhy a company that had hoped to turn a communituy into condominiums during the housing boom but took big losses Ekovich said. Yet, Aimco’s motivation is uncleae to Ekovich. Aimco is carrying nearly $7.5 billion in debt including $5.8 billion in propertgy loans — but its profits are up more than 400 percenr from theprevious year.
In CEO Terry Considine is looking to pick up bonuse of upto $6 million, a year afterf he had to defer his $600,000 base salarhy for not meeting corporate Ekovich suggested that this coulcd be nothing more than a typical culling by Aimco to strengthen its overalkl portfolio. And Aimco has some room to even in asellers market, sincwe it bought its local properties long before the housinvg boom. “In 2004 and 2005, people put things on the markeg just to get a profigt and to get acrazh price,” Ekovich said. “Today they are not going to get thatcrazu price. Unless they bought before 2001, 2002 or they lost money.
” Buyers are in the marke right now, and transactions could start inching back upto normal, Ekovicnh said. But the days of paying six figure s per unit arelikely over. “The deals that are closingf right now are from buyers who are not even willing to buy atlast year’s he said. “In fact, pricing for apartment buildings is going back to 2005 and will continur to trendeven earlier.
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