The Alaska Permanent Fund Corporation and the Apartment Investment and Management Company (AIMCO) have formed a joint venture in which the fund will invest up to $1 billion into future Aimco-led multifamily developments.
Those properties would primarily be concentrated in high-growth submarkets in South Florida, and the Washington, D.C. and Denver metro areas, where Aimco currently controls a development pipeline with the potential to construct more than 15 million square feet.
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, according to a release.
Under 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.
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 and has a sizeable commercial real estate portfolio
that includes apartment communities nationwide.
Lynn Stanfield, CFO, Aimco, said her firm shares a common commitment to investing in the development of dynamic multifamily properties in high-growth U.S. markets.
“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,” Stanfield said in prepared remarks.