Aimco Puts $650M Mixed-use Brickell Building on the Market

Aimco, a Denver-based real estate investment trust, has put its waterfront office tower and adjacent apartment building in Brickell on the market, with an approximate price tag of $650 million. Marketed as a potential redevelopment opportunity, the properties include the 32-story Brickell Bay Office Tower and the 31-story Yacht Club Apartments.

Marketing and Details

The listing is being handled by Robert Given and Troy Ballard of CBRE. While the official asking price wasn't disclosed, sources have confirmed the target price. The 4.3-acre site presents redevelopment potential for supertall structures totaling over 3.1 million square feet, with permissible uses including condos, hotels, offices, and retail.

Property Overview

The Brickell Bay Office Tower, spanning over 300,000 square feet, is 80 percent leased with long-term leases extending mostly until 2027. The Yacht Club Apartments, comprising 357 units, boast a high occupancy rate of 97 percent. Aimco acquired a significant stake in the office tower in 2019 and purchased the Yacht Club Apartments in 2009.

Redevelopment History and Potential

While Aimco had approval for a significant redevelopment of the Yacht Club property in 2016, the proposed tower was never built. The properties themselves have a long-standing presence in Brickell, with the Yacht Club completed in 1998 and the Brickell Bay Office Tower in 1985.

Financial Implications and Outlook

Aimco's decision to sell these assets is reflected in its 2023 earnings report, which noted a decline in net operating income partly due to lease expirations. The REIT aims to close the sales by year-end, subject to favorable pricing and terms, with proceeds intended for capital returns to shareholders and liabilities retirement.

Market Dynamics and Surrounding Developments

The listing coincides with a flourishing office market in Brickell, spurred by notable relocations like Ken Griffin's Citadel and Citadel Securities. Griffin's acquisition of a bayfront site for a future headquarters tower further underscores the area's attractiveness. Additionally, the Brickell condo market has seen significant developer interest, with projects like One Twenty Brickell and a Mercedes-Benz-branded tower in the works.