Aimco’s Brickell Office and Apartment Towers Hit the Market for $650M: A Redevelopment Opportunity

Aimco’s Brickell Office and Apartment Towers Hit the Market for $650M: A Redevelopment Opportunity

Aimco, a Denver-based real estate investment trust, has listed its waterfront office tower and adjacent apartment building in Brickell for approximately $650 million, presenting a significant redevelopment opportunity. The properties, marketed by CBRE, offer the potential for multiple supertall structures totaling over 3.1 million square feet.

1. Property Details and Market Value: The 4.3-acre site includes the 32-story Brickell Bay Office Tower and the 31-story, 357-unit Yacht Club Apartments. While the exact asking price wasn’t disclosed, sources confirm it to be around $650 million. The site’s redevelopment potential spans various uses, including condos, hotels, offices, and retail spaces, with a maximum height limit of 1,049 feet.

2. Lease and Ownership Details: The Brickell Bay Office Tower is 80% leased, with most leases extending through 2027, while the Yacht Club Apartments boast a 97% occupancy rate. Aimco acquired a 95% stake in the office tower in 2019 and purchased the Yacht Club in 2009. Previous redevelopment plans for the Yacht Club garage never materialized.

3. Financial Considerations and Expectations: Aimco anticipates the sale to conclude by year-end, contingent on favorable pricing and terms. The proceeds from the sale are earmarked for returning capital to stockholders and retiring associated liabilities. The REIT reported a decline in net operating income in its 2023 earnings report, partly attributed to lease expirations at the office tower.

4. Context and Market Trends: The listing aligns with a booming Brickell office market, driven by significant developments like billionaire Ken Griffin’s plans for a headquarters tower nearby. The surrounding condo market has also seen increased developer interest, with new projects such as One Twenty Brickell and a Mercedes-Benz-branded mixed-use tower in the pipeline.

Aimco’s decision to list its Brickell properties reflects the area’s dynamic real estate landscape and presents a compelling opportunity for potential investors to capitalize on the region’s growth trajectory.

Source: The Real Deal by Lidia Dinkova

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