Apartment Investment & Management Co. (AIV), commonly known as Aimco, opened the San Bruno, Calif.-based luxury apartment homes – Pacific Bay Vistas – after extensive redevelopment. The move is in line with Aimco’s ongoing portfolio enhancement activity.
Pacific Bay Vistas is located at 2 Pacific Bay Drive in the center of San Bruno. The property is strategically located in an area that offers a view of the Pacific Ocean to the west and the San Francisco Bay to the east. Also, it enjoys proximity to the famous adventure park and beach of the area. As per the redevelopment plan, all 14 residential buildings of Pacific Bay Vistas were refurbished. All the 308 apartments of the asset are well furnished with both basic and modern amenities.
With the strategic location and improving San Bruno housing market trends, Pacific Bay Vistas provides huge upside potential for Aimco, going forward. Moreover, rise in apartment demand generated by ‘echo boomers’ – children of the baby boomer generation – especially in Sunbelt regions is expected to offer Aimco ample growth opportunity for its B/B+ assets.
Notably, Aimco has been focusing on expanding its footprint through acquisitions and redevelopments across target markets in the U.S. that are concentrated mostly in coastal areas including the Sunbelt cities. Consequently, the company acquired a Midtown Atlanta-based five-story property for $9.5 million in the current quarter. Moreover, Aimco has several other apartment homes in its redevelopment pipeline including Elm Creek in Illinois as well as Lincoln Place and The Preserve at Marin, both in California.
Aimco currently carries a Zacks Rank #3 (Hold). Better-performing REITs that are worth a look include Campus Crest Communities, Inc. (CCG), Sun Communities Inc. (SUI) and Douglas Emmett Inc. (DEI). All of these stocks carry a Zacks Rank #2 (Buy).