January 29, 2022 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

Aimco: Lincoln Place Redevelopment Moves Forward

The Apartment Investment and Management Company (“Aimco”) is moving forward on redeveloping the Lincoln Place apartment complex after receiving a $190.7 million FHA-insured loan that closed last Friday. The loan is the largest FHA Section 221(d)(4) unsubsidized loan ever insured by the U.S. Department of Housing and Urban Development.

Aimco: Lincoln Place

Press release from Aimco via BusinessWire:

Aimco Announces Closing of Lincoln Place Financing and Start of Redevelopment

Apartment Investment and Management Company (“Aimco”) (NYS: AIV) announced the closing of financing to fund its Lincoln Place redevelopment.

Lincoln Place is a 35-acre property located approximately 1.5 miles from the Pacific Ocean in Venice, California, one of southern California’s premier residential submarkets.

Lincoln Place is surrounded by numerous cultural, retail and entertainment amenities, including the world famous Venice Beach and Boardwalk, a short 10-minute bike ride from the community, and the Santa Monica Pier, less than three miles away. Los Angeles International Airport is approximately five miles to the south of Lincoln Place and residents of the community have direct access to several major freeways, arterials, as well as to public transportation, including, in two years, access to the Los Angeles light rail system. High tech companies have been attracted by these qualities, giving rise to the area sometimes being called “Silicon Beach.” For example, Google’s southern California headquarters are located 1.3 miles west of Lincoln Place.

Terry Considine, Chairman and Chief Executive Officer, comments: “It is very gratifying that the Lincoln Place redevelopment is now underway. It has taken many years to arrive here. More, it has taken the hard work of many, including officials of the City of Los Angeles, the HUD Los Angeles field office, and my Aimco teammates. I am delighted by our prospects.”

Demand for apartments in Venice is strong with approximately 30% of the submarket population in the prime renter age cohort of 24 to 40 years old and with renters accounting for 57% of all households. As of second quarter 2012, the submarket median income was $76,000 while the submarket median home value was $635,000. The submarket multifamily supply increased at the annual average of 1.74% between 1990 and 2009. Since 2009, only 70 units have been added. REIS, a third-party provider of commercial real estate performance data and analysis, projects that it will take four more years for multifamily completions as a percentage of existing stock to return to historic levels.

Lincoln Place was constructed between 1949 and 1951. Its original development included a design team led by Ralph A. Vaughn, an African-American architect interested in the Garden City Movement, popular in the United States in the 1930s, which sought to combine the amenities of urban life with ready access to nature. As a result, Lincoln Place is listed on the National Register of Historic Places, the California Register of Historic Places, and is a local Historic-Cultural Monument. The redevelopment is designed to revive the charm of the community’s existing buildings and to preserve its expansive open green spaces including almost 400 trees. Newly constructed buildings will maintain the character and appeal of this distinctive property.

An earlier phase of the Lincoln Place redevelopment began last year with the redevelopment of four buildings with 65 apartment homes. Work was completed earlier this year and 50 of the apartment homes have been re-leased to returning residents.

Over the next two years, Aimco will redevelop another 41 buildings including 631 now-vacant apartment homes, together with common areas and landscaping. Aimco will also construct on now-vacant land 13 new buildings with 99 apartment homes, a 5,000 square foot leasing center and a 6,100 square foot fitness center and pool area.

The redevelopment is being funded by a $190.7 million FHA-insured loan that closed last Friday. The loan bears interest at 2.73%, and is interest-only until 2014, when it converts to a 40-year fully amortizing loan that is freely pre-payable after 10 years. The loan represents the largest FHA Section 221(d)(4) unsubsidized loan ever insured by the U.S. Department of Housing and Urban Development. The lender and servicer of the loan is Red Mortgage Capital, LLC.

At closing, Aimco prepaid a $63 million loan secured by the property that required interest at 7.5% and that was due in fourth quarter 2013.

Additionally, because of its historic significance, the project has been approved for historic tax credits, which Aimco intends to sell, raising $16 million.

Financial details of the project are as follows ($ in millions unless otherwise noted):

Aimco carrying value as of September 30, 2012* $188
Estimated redevelopment costs: $140
Total estimated investment at completion: $328
Estimated third-party tax credit equity contribution (16)
Estimated net income earned prior to stabilization (15)
Aimco net investment: $297

Projected stabilized rents per unit, un-trended for projected market rent growth: $2,470

Projected redevelopment investment returns*:

Estimated stabilized yield on net investment, before projected market rent growth 6.0 %
Free Cash Flow Internal Rate of Return: 9.5%
Levered Internal Rate of Return: 15.0%

Redevelopment schedule:

Construction start: 4Q 2011
Initial occupancy:
Returning tenant units: 2Q 2012
Remaining existing units: 2Q 2013
Newly constructed units: 1Q 2014
Projected construction completion: 4Q 2014
Projected stabilized operations: 1Q 2015

Aimco is a real estate investment trust that is focused on the ownership and management of quality apartment communities located in the largest markets in the United States. Aimco is one of the country’s largest owners and operators of apartments, with 344 communities serving approximately 250,000 residents in 30 states, the District of Columbia and Puerto Rico. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.

Related Posts

Cedars-Sinai Urges Blood Donations

January 11, 2022

January 11, 2022

As 2022 begins, Cedars-Sinai is facing a critical blood shortage and is encouraging prospective donors to give blood as soon...

US Motorcycle Helmet Laws Mapped

January 5, 2022

January 5, 2022

At YoVenice we have spent years writing about news stories of motorcyclists with head and brain injuries from collisions. We...

Interview: Westside Food Bank Adapting to Challenges of the Pandemic

January 4, 2022

January 4, 2022

An interview with Bruce Rankin, Executive Director of The Westside Food Bank By Dolores Quintana We spoke to Bruce Rankin,...

Yo! Venice’s Best Westside Dishes of 2021

December 28, 2021

December 28, 2021

By Sam Catanzaro Whether it’s breakfast, lunch, dinner or anytime in-between, the Westside has no shortage of world-class food to...

The Best CBD Gift For Every Occasion

November 30, 2021

November 30, 2021

Thanks to the growing popularity of Hemp CBD, there’s a lot of new and unique CBD products that will make...

Venice Family Clinic Completes Merger with South Bay Family Health Care

November 9, 2021

November 9, 2021

Venice Family Clinic and South Bay Family Health Care, which have together provided more than a century of health care...

New French Restaurant Opens by Beach in Playa del Rey

October 20, 2021

October 20, 2021

Westside Dining Scene October 21, 2021 By Dolores Quintana There’s a new French restaurant open in Playa Del Rey according...

Breaking Barriers Through Sport

October 19, 2021

October 19, 2021

Ex-Navy Rescue swimmer and triathlete, Jordan Hunter is changing the statistics of African Americans not knowing how to swim and...

Community Volunteer Patrol Program Brings Civilians New Insight Into Law Enforcement

October 19, 2021

October 19, 2021

The West LA Police Department has a community patrol program bridging the gap between civilians and law enforcement. Video brought...

Pali High Debuts Fall Musical Avenue Q Live on Stage

October 12, 2021

October 12, 2021

Pali high students bring the musical Avenue Q to the stage for a limited time. Video brought to you by...

UCLA awarded $1 Million Dollars Towards Enabling Safer Bike Commutes

October 11, 2021

October 11, 2021

The Civic Bicycle Commuting team along with partners is one of six competitors for the Civic Innovation Challenge backed by...

Carmelo Anthony Will Be Crucial The Lakers’ Title Chase, From The Bench

October 8, 2021

October 8, 2021

The Los Angeles Lakers remain the second favorites for the NBA championship in 2022 on the back of their slow...

Barn Owl Nesting Box Program Comes to The Westside.

October 5, 2021

October 5, 2021

The barn owl nesting box program from Citizens for Los Angeles Wildlife is helping these birds create a network of...

Missing Woman Last Seen in Venice Beach

September 29, 2021

September 29, 2021

Jessie Jean-Baptiste last seen Saturday By Sam Catanzaro Police are seeking a missing 25-year-old woman last seen in Venice Beach...