Aimco Properties LP, a division of Apartment Investment and Management Co. (AIV), recently sold its Palencia Apartment Homes asset in Tampa for $23.3 million. This is the second multifamily sale in the region in 2009. The real estate investment trust plans to sell seven more multifamily units in the region by the end of this year.

Aimco bought Palencia Apartment Homes for $14.9 million in 1997. The property covers 70 acres of land and generates an average rent of $766, or 99 cents per square foot.

Earlier this year, AIV sold its Doral Oaks Apartment for $10.7 million, or $42,460 per unit, which was nearly twice its original purchase price. The 252-unit complex was sold to GMC Properties, a subsidiary of GMC Mortgages & Financial Services, a leading financial services products company.

In the last two years, AIV has been persistently increasing liquidity through asset sale and currently lists 100 communities representing over 28,700 units across the country for sale. Seven of these communities are located in Tampa and include the 276-unit Sienna Bay and the 200-unit Tamarind Bay, both in St. Petersburg; the 262-unit Twin Lakes in Palm Harbor; the 200-unit Solana Vista in Bradenton; the 300-unit Charleston Landings in Brandon; the 348-unit Bridgeview in Tampa and the 256-unit Fisherman’s Landing in Temple Terrace.

With the sale of non-core assets, AIV also aims to concentrate on fewer markets. However, despite attempts to reposition its portfolio in higher growth markets, much of the company’s portfolio is still located in areas where housing is relatively cheap. Consequently, its long-term profitability is likely to suffer. As AIV continues to sell non-core assets and buy in higher growth, infill areas, we expect continued earnings dilution.

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