Prominent Developer Carl Dranoff Sells Six Philadelphia Area Apartment Communities to Aimco
(3 months ago)
PHILADELPHIA and DENVER: Dranoff Properties, Inc. and Apartment Investment and Management Company ("Aimco") (NYSE: AIV) announced today a transaction in which Dranoff Properties will sell Aimco its apartment community holdings in the Philadelphia MSA for a purchase price of USD 445 million.
The portfolio includes six properties, comprising 1,006 existing apartment homes, 110 apartment homes under construction, and 185,000 square feet of office and retail space.
The "A" quality portfolio developed by Dranoff Properties includes Locust on the Park in the Fitler Square neighborhood, 777 South Broad and Southstar Lofts on the Avenue of the Arts, The Left Bank in University City, The Victor in Camden, NJ, and One Ardmore Place in Lower Merion Township. Each property tells a unique story about Philadelphia's history and revival and all have been integral to its reemergence as a dynamic, world-class city.
"Over the past twenty years, we've developed and assembled a portfolio of rental properties that has redefined luxury living in the Philadelphia region. With a pipeline of new and exciting projects on the horizon, the timing is right to sell six of our premier properties to Aimco and become a major investor in the company. Aimco's expansion and commitment to Philadelphia make them ideal stewards of these trophy assets that we carefully built, owned and managed," said Carl Dranoff, Founder and CEO of Dranoff Properties. "I am incredibly enthusiastic about the future of Dranoff Properties as we begin our third decade. Propelled by a strong capital base, powerful brand and deep talent pool, we look forward to delivering a fresh new generation of transformative projects in the Philadelphia region and beyond."
"We are thrilled to acquire these well-located communities in Philadelphia, a market we know and like," said Aimco Chairman/CEO Terry Considine. "I appreciate the significant investment in Aimco made by highly regarded local developer Carl Dranoff and the faith he has in our ability to manage these assets, guarding their quality and providing excellent service to their residents. Carl and his talented team have transformed residential living in Philadelphia. I wish them continued success."
The acquisitions from Dranoff Properties are expected to close in 2Q18, except for the purchase of One Ardmore Place, which is expected to close in 1H19 after completion of construction.
"We continue to be bullish on Philadelphia whose stable and diversified economy is enjoying a growth spurt. Center City and University City's 'eds and meds' rival Cambridge and Palo Alto with their highly educated workforces and the city provides a cost-effective alternative to the other Northeastern hubs of Washington D.C., New York, and Boston," commented Aimco Executive Vice President Wes Powell, who led the Aimco acquisition team.