The Alaska Permanent Fund Corporation and Apartment Investment and Management Company (AIMCO) have formed a joint venture in which the fund will invest up to $1 billion in future multi-family developments led by Aimco.
These properties would be primarily concentrated in the high-growth submarkets of South Florida and the Washington, D.C. and Denver metro areas, where Aimco currently controls a development pipeline with the potential to build over 15 million square feet. .
Aimco will act as general partner and developer, pledging at least $40 million through financing or asset contribution, while collecting customary fees, according to a statement.
Under the agreement, APFC will fund up to $360 million in limited partner equity into projects that meet specific criteria, including, among other things, performance thresholds and minimum project size.
APFC is the largest sovereign wealth fund of its type at the state level in the United States, with a total fund value of $79.5 billion as of May 31, 2022 and has a significant commercial real estate portfolio which includes nationwide apartment communities.
Lynn Stanfield, chief financial officer of Aimco, said her company shares a common commitment to investing in the development of dynamic multifamily properties in high-growth US markets.
“This agreement underscores the quality of opportunities created by our team and provides the opportunity to unlock value embedded in our development pipeline,” Stanfield said in prepared remarks.