Aimco closes $100 million transaction for 84 apartment properties.

Aimco, a Denver-based real estate investment trust (REIT), announced it has closed on a $100.1 million transaction structured to provide for the future acquisition of 84 residential properties having 1,597 apartment units and 42 commercial/retail stores located in the West Harlem district of New York City.

In this phase of the transaction, Aimco also has agreed to provide up to $9 million in additional funding for the renovation of units. The properties are located from West 111th St. to West 160th St.

This transaction, if all the conditions are fulfilled, will permit Aimco to participate in the Harlem Renaissance, according to Aimco Chief Investment Officer Harry Alcock.

"We see exciting opportunity in the growth and transition in this area, specifically from expansions of Columbia University, Harlem Hospital and new retail outlets," said Alcock. "This transaction is consistent with our broader investment strategy, in that it presents upside opportunity through upgrading and redevelopment of properties in a community with changing demographics and strong rent-growth potential."

Aimco said it expects to acquire the assets through the purchase option and put arrangement, which expires in 10 years. The full purchase price, assuming the maximum revenue threshold, is $278.6 million, including the $9 million additional funding for renovation.

In conjunction with the loan agreement, Aimco and the current owner have entered into a purchase option and put agreement under which Aimco may purchase some or all of the buildings at any time following the loan closing, and the current owner may require Aimco to purchase the buildings upon achievement of certain revenue thresholds.