Apartment Investment and Management Company (Aimco) and Alaska Permanent Fund Corporation (APFC) have signed a programmatic joint venture agreement to fund up to $1 billion of future Aimco-led multifamily developments.
Pursuant to the agreement, APFC will fund up to $360 million of limited partner equity into projects meeting specific criteria, including, among other items, return thresholds and minimum project size.
Aimco will act as the general partner and developer, committing to at least $40 million through funding or the contribution of assets, while earning customary fees.
Aimco currently controls a development pipeline with the potential to construct more than 15 million square feet, primarily concentrated in high-growth submarkets located in South Florida, and the Washington, D.C. and Denver metro areas.
APFC is the largest state-level sovereign wealth fund of its kind in the United States with a total fund value of $79.5 billion as of May 31, 2022.
“We are thrilled to have APFC as a joint venture partner,” commented Lynn Stanfield, Aimco Chief Financial Officer. “We share a common commitment to investing in the development of dynamic multifamily properties in high-growth U.S. markets. For Aimco, this agreement underscores the quality of the opportunities sourced by our team and provides the opportunity to unlock the value embedded within our development pipeline.”