Apartment Income REIT Corp. Sells $500M Multifamily Portfolio

BOSTON, MA – Real estate investment trust Apartment Income REIT Corp. (AIR) has sold a portfolio of six apartment communities for $500 million. The assets total 1,314 units in New England.

The sales price represents a trailing 12-month NOI cap rate of 4.4%.

Since the end of 2020, AIR has completed $2.2 billion of property sales and joint-venture transactions. These transaction prices have averaged 17% above the firm’s internal estimates of gross asset value as of Q1 2020.

“Consistent with our paired trade philosophy and focus on accretive growth, we have enhanced our portfolio by reinvesting in approximately $1.7 billion of acquisitions (including Southgate Towers in Miami Beach under contract to close early in 2023), as well as reducing leverage,” says John McGrath, chairman of the AIR investment committee.

McGrath adds, “We expect additional acquisitions to increase the Acquisition Portfolio (properties new to the AIR platform) from 17% of GAV to 30%. We also expect this portfolio will earn unlevered IRRs that exceed by more than 200 basis points the consistently calculated IRRs of the properties sold to fund the acquisitions.”