Other Significant Transactions

Investment in Apartment Communities

During the three months ended March 31, 2015, we acquired for $38.3 million a 94-apartment home community located in Atlanta, Georgia.

Asset Management Business Disposition

In December 2012, we sold the Napico portfolio, our legacy asset management business. The transaction was primarily seller-financed, and the associated notes are scheduled to be repaid over several years. The notes will be repaid from the operation and liquidation of the portfolio and are collateralized by the buyer’s interests in the portfolio.

In accordance with the provisions of GAAP applicable to sales of real estate or interests therein, for accounting purposes, we have not recognized the sale and are accounting for the transaction under the profit sharing method. Until full payment has been received for the seller-financed notes, we will continue to recognize the portfolio’s assets and liabilities, each condensed into single line items within other assets and accrued liabilities and other, respectively, in our consolidated balance sheets, for all dates following the transaction. Similarly, we will continue to recognize the portfolio’s results of operations, also condensed into a single line item within our consolidated statements of operations, for periods subsequent to the transaction. To date we have received all required payments under the seller-financed notes.

At March 31, 2015, the Napico portfolio consisted of 17 partnerships that held investments in 14 apartment communities that were consolidated and 53 apartment communities that were accounted for under the equity or cost methods of accounting. The portfolio’s assets and liabilities included in our condensed consolidated balance sheets are summarized below (in thousands):



	March 31, 2015		December 31, 2014
Real estate, net	$	116,286	$	117,851
Cash and cash equivalents	31,714		23,133
Investment in unconsolidated real estate partnerships	1,854		8,392
Other assets	18,704		11,759
Total assets	$	168,558	$	161,135

Total indebtedness	$	113,233	$	113,641
Accrued and other liabilities	10,576		4,417
Total liabilities	$	123,809	$	118,058

Noncontrolling interests in consolidated real estate partnerships	43,685		44,106
Equity attributable to Aimco and the Aimco Operating Partnership	1,064		(1,029		)
Total liabilities and equity	$	168,558	$	161,135

Summarized information regarding the Napico portfolio’s results of operations, including any expense we recognize under the profit sharing method, is shown below in thousands. The net income (loss) related to Napico (before income taxes and noncontrolling interests) is included in other, net in our condensed consolidated statements of operations.



	Three Months Ended
	March 31,
	2015			2014
Revenues	$	6,467		$	5,675
Expenses	(5,410		)	(5,201		)
Equity in loss of unconsolidated entities, gains or losses on dispositions and other, net	1,079			(1,994		)
Net income (loss) related to legacy asset management business	2,136			(1,520		)
Income tax (expense) benefit associated with legacy asset management business	(1,019		)	70
Loss allocated to noncontrolling interests in consolidated real estate partnerships	406			899
Net income (losses) of legacy asset management business attributable to Aimco and the Aimco Operating Partnership	$	1,523		$	(551	)

Revenues increased during the three months ended March 31, 2015, as compared to the three months ended March 31, 2014, due to an adjustment to increase subsidized rents to reflect current market rates for one of the apartment communities in this portfolio.

Based on our limited economic ownership in this portfolio, most of the assets and liabilities are allocated to noncontrolling interests and do not significantly affect our consolidated equity and partners’ capital. Additionally, the operating results of this portfolio generally have an insignificant effect on the amounts of income or loss attributable to us. Income or loss attributable to these noncontrolling interests will continue to be recognized commensurate with the recognition of the results of operations of the portfolio. If full payment is received on the notes and we meet the requirements to recognize the sale for accounting purposes, we expect to recognize a gain attributable to Aimco and the Aimco Operating Partnership.

Equity and Partners’ Capital Transactions

During the three months ended March 31, 2015, Aimco issued 9,430,000 shares of its Common Stock, par value $0.01 per share, in an underwritten public offering, for net proceeds per share of $38.90. The offering generated net proceeds to Aimco of $366.6 million, net of issuance costs. Aimco contributed the net proceeds from the sale of Common Stock to the Aimco Operating Partnership in exchange for a number of common partnership units equal to the number of shares of Common Stock issued.

Using the proceeds from this offering, during the three months ended March 31, 2015, we repaid the outstanding balance on our Credit Agreement, expanded our unencumbered asset pool, and Aimco redeemed the remaining outstanding shares of its Series A Community Reinvestment Act Preferred Stock at its par value of $27.0 million. In connection with Aimco’s redemption of preferred stock, the Aimco Operating Partnership redeemed from Aimco an equal number of the corresponding class of partnership preferred units.