The assets include Los Arboles and Vista del Lagos, two contiguous developments totaling 432 units in South Chandler; Pine Shadows, a 272 unit community in Tempe; Shadow Creek, a 266 unit community in Mesa; Woodcreek, a 432 unit community in Mesa; and Wickertree Apartments, a 226 unit community in Phoenix.

There are no asking prices for the properties, which are for sale both individually and as a portfolio. Offers are due Friday, March 20.

The disposition is part of a larger effort by Aimco to sell off $2 billion of market-rate and affordable properties over the next two years, mostly in non-target markets. Its non-target markets include Austin, Baltimore, Indianapolis, Nashville, Norfolk and Raleigh.

In 2008, the company sold 38,091 units in 155 properties for $2.58 billion ($67,732 per unit) in gross revenues. Of the 130 conventional (market rate) properties sold in 2008, 81 were in non-target markets and 49 were inferior locations within target markets. The average cap rate for conventional assets was 7.7% while average cap rate for affordable assets was 5.3%. The lower rate for affordable properties is because they "have embedded opportunities to increase rents over time," Robertson told analysts.

"Looking forward, we plan to sell most of the $1.5 billion dollar balance of conventional properties located outside of our target markets as well as a significant number of affordable properties with the majority of these sales occurring in 2009 if market conditions allow," Aimco chief investment officer David Roberston told analysts during a February conference call.

Phoenix is one of the company's target markets, so the assets now for sale presumably are ones the company considers to be in inferior locations. Aimco has said Phoenix is one of six markets it operates in that will post "below-average revenue performance" in 2009 because it is one of the markets where "the housing bubble was pronounced and the shadow supply remains high," according to SEC filings and the conference call.

Including the assets now for sale Aimco owns 4,065 units in 16 properties in the Phoenix market. Across all markets, the company owns an equity interest in 117,719 units in 514 properties.

A spokesperson for Aimco was unavailable Monday for comment. The listing broker, CBRE vice chairman Sean Cunningham, was away at a conference and unavailable Monday afternoon for comment. The following is a breakdown of each of the properties listed for sale including pro forma 2009 occupancy and NOI and any debt:

• Los Arboles and Vista del Lagos is a combined 432-unit community constructed in 1986 in South Chandler, just south of Chandler Boulevard and Alma School Road. Pro Forma 2009 NOI is $2.43 million assuming an economic vacancy of 9% (5% vacancy and 4% concessions, other) and operating expenses of $1.08 million. Annual principal and interest on approximately $16 million of debt tied to the property is $1.51 million.
• Woodcreek is a 432 unit community completed in 1985 in Mesa. Pro Forma 2009 NOI is $1.95 million assuming an economic vacancy of 9% (5% vacancy and 4% concessions, other) and operating expenses of $1.84 million. Annual principal and interest on approximately $19.8 million of debt tied to the property is $1.42 million.
• Wickertree Apartments is a 226-unit community completed in 1983 located near the I-17 and Loop 101 interchanges in Phoenix. Pro Forma 2009 NOI is $833,225 assuming an economic vacancy of 9% (5% vacancy and 4% concessions, other) and operating expenses of $1.01 million. Annual principal and interest on approximately $2.6 million of debt tied to the property is $394,284 million.
• Pine Shadows, a 272-unit affordable infill community developed in 1983 within Tempe's I-10 employment corridor. Pro Forma 2009 NOI is $1.14 million assuming an economic vacancy of 5.5% (4% vacancy and 1.5% concessions, other) and operating expenses of $1.03 million. The bond debt associated with the property is not assumable and the LURA set-aside requirements are in place until February 2014.
• Shadow Creek is a 266-unit community with an affordable component that was developed in 1984 in an infill location between Arizona State University and downtown Mesa. Pro Forma 2009 NOI is $1.11 million assuming an economic vacancy of 5.5% (4% vacancy and 1.5% concessions, other) and operating expenses of $1.01 million. There is no debt associated with the property.

Aimco consolidated the properties into its portfolio in the late 1990s for the most part. Its total cost basis in the assets is $90.55 million combined, or about $55,400 per unit, according to SEC filings.

Real Capital Analytics shows just two apartment sales in the Phoenix market since the start of the year. In January, a 240-unit garden property built in 1995 in Mesa sold for $83,333 per unit, which was a 6% cap on 2009 pro forma NOI. In February, a 350-unit garden property built in 1987 in Scottsdale sold for $91,429 per unit; no cap rate information was available.