CREATING VALUE
1)
Current Parkmerced Site
(3,221 Existing Rent Stabilized Units¹)
Parkmerced at Full Buildout
PARKMERCED INVESTMENT
Community Details
•
.
Investment in One of the Most
Dynamic Multifamily Development
Opportunities in the U.S.
Parkmerced is located on a 152-acre site in southwest San Francisco and represents one of the largest and most dynamic
development opportunities in the country with a significant multifamily component
In place development agreement with City of San Francisco to develop 5,679 new market rate apartment homes and 300,000 sf
of neighborhood commercial uses
AIMCO INVESTMENT
•
$275M Mezzanine Loan ($346M balance at 1Q22)
•
AIMCO OPTION
10-year option (expires Nov 2031)
•
~71-85% LTV Tranche (at Origination)
5-year term (Matures Dec 2024)
10% Interest (Accruing)
ASYMMETRIC OUTCOMES:
BASE CASE:
Mezzanine Loan
Aimco is repaid its loan to the partnership and accrued
interest providing an attractive return on investment.
Aimco's mezzanine loan is to the partnership that controls phases 2-9 of
development and is collateralized by 3,165 of the existing apartment homes and a
post redevelopment total of 7,092 homes.
Aimco
CREATING
VALUE
30% Equity Position in Partnership
Cost: $1 million + 30% of incremental capital
improvements
UPSIDE:
Execute Option
Aimco participates as a 30% equity partner in the future
development opportunity at cost.
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