Apartment Investment and Management Company (“Aimco”) (NYSE: 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.