Investor Presentaiton
PORTFOLIO MANAGEMENT
In 2019 Aimco has RE-ALLOCATED CAPITAL from submarkets with lower-growth prospects, such as Suburban Chicago, to
submarkets with HIGHER-GROWTH PROSPECTS, such as Miami Beach (through redevelopment of Flamingo Point) and
Brickell (through acquisition of 1001 Brickell Bay Drive).
1001 Brickell Bay Drive
In July, in an off-market transaction, Aimco acquired for $157M a 95% interest in the
office building located contiguous to its Yacht Club apartments. Combining the two
properties, Aimco owns 4.2 acres with more than 600 linear feet of Biscayne Bay
frontage.
THE BUBURE CONWAY BY T
Sabadell
THE BLADE CHA 35
1001 Brickell Bay
Drive
(Office Use)
Property
Sales
(Expected)
Approximate
Spread
NOI Yield (Initial at 85% Occ)
mid/high - 5%
mid/high - 5%
+10 bps
NOI Yield (Stabilized at 92% Occ)
low/mid - 6%
mid/high - 5%
+60 bps
FCF IRR
mid - 8%
-6.0%
+250 bps
This acquisition has:
•
LIMITED DOWNSIDE due to the demand for office space in Brickell and the attractive current return from the existing office
use.
CONSIDERABLE UPSIDE due to demand in Brickell for more intense real estate uses ranging from office, retail, and hotels
to condominiums and rental apartments. The highest land values will likely result from a combination of these uses, in a
premier waterfront development with permanently unobstructed views.
Nearby land has been developed with an 86-story tower. Equal or greater density is permitted by right under the existing zoning.
Development of mixed-use, high rise buildings is not within Aimco investment policies. We expect such a development
will be undertaken by a purchaser of the two properties.
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