06/26/2013 | By Carisa Chappell
Aimco owns and operates 259 apartment communities located in 24 states, the District of Columbia and Puerto Rico. The company held a ribbon-cutting ceremony in June for a newly constructed luxury townhome rental community in suburban Chicago.
Considine talked about the company’s recent redevelopment efforts in 2013 and expectations for acquisitions.
“We’ll spend about $150 million this year in the redevelopment of about eight properties. We expect free cash flow and internal rates of return in the double digits,” he said.
When it comes to acquisitions, Considine describes the apartment REIT’s activity as “conservative.” He explained the reasoning behind his company’s strategy and what he’s witnessing so far in the current acquisitions market.
“Apartments are very attractive investments, and today there’s a lot of capital trying to be invested in apartments,” he said. “So, it’s a time to be selective in which properties one buys and to look carefully at what the risk-adjusted returns might be.”
As talks of a rebound in the single-family home market grow more positive, Considine discussed how that recovery may impact the rental apartment industry in terms of occupancy and rental rates.
“The single-family housing market is revived, and I think that’s good news, both for the economy and, therefore, for multifamily,” he said.
However, he added that single-family homes “are not really substitutes for apartments.” Considine said that 75 percent of Aimco’s customers are not married and are not particularly interested in a more settled suburban home style.