8-K/A

APARTMENT INVESTMENT & MANAGEMENT CO (AIV)

8-K/A 2025-12-29 For: 2025-12-22
View Original
Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K/A

Amendment No. 1

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): December 22, 2025

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

AIMCO OP L.P.

(Exact name of registrant as specified in its charter)

Maryland (Apartment Investment and Management Company) 1-13232 84-1259577
Delaware (Aimco OP L.P.) 0-56223 85-2460835
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or organization) File Number) Identification No.)

4582 SOUTH ULSTER STREET

SUITE 1450, DENVER, CO 80237

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (833) 373-1300

NOT APPLICABLE

(Former name or Former Address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to section 12(b) of the Act:
--- --- ---
Title of each class Trading Symbol(s) Name of each exchange on which registered
Apartment Investment and Management Company<br><br>Class A Common Stock AIV New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the exchange act. ☐

Explanatory Note

As previously disclosed in its Current Report on Form 8-K filed with the Securities and Exchange Commission on December 23, 2025 (the “Original Form 8-K”), on December 22, 2025, Apartment Investment and Management Company (“Aimco”) and Aimco OP L.P. (collectively, the “Company” or “Seller”) completed the sale of the ownership interests in its subsidiaries that own the properties located at 1001 Brickell Bay Drive (“1001 Brickell”) and 1111 Brickell Bay Drive (“The Yacht Club Apartments”) in Miami, Florida (together referred to as the “Brickell Assemblage”) for a gross purchase price of $520 million. The purchaser financed $85 million of the $520 million purchase price with transferable seller financing notes from Aimco.

This Amendment to Current Report on Form 8-K is being filed to amend and supplement the Original Form 8-K, the sole purpose of which is to provide the financial statements and pro forma financial information required by Item 9.01, which were excluded from the Original Form 8-K and are filed as exhibits hereto and are incorporated herein by reference. All other items in the Original Form 8-K remain the same.

Cautionary Statement Regarding Forward-Looking Statements

This Current Report on Form 8-K contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s),” “forecast(s),” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements, including those regarding the timing of asset sales and the timing and amount of capital expected to be returned to stockholders, are not guarantees of future performance, condition or results, and involve a number of known and unknown risks, uncertainties, and assumptions that may affect actual results or outcomes, including changes in market conditions, fluctuations in our stock price, our financial performance, regulatory changes, and general economic conditions. Readers should carefully review Aimco's financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Aimco's Annual Report on Form 10-K for the year ended December 31, 2024 and the section entitled “Risk Factors” in Part II, Item 1A of Aimco’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, as these filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These forward-looking statements reflect management's judgment as of this date, and Aimco assumes no (and disclaims any) obligation to revise or update them to reflect future events or circumstances.

Item 9.01. Financial Statements and Exhibits.

(b) Pro Forma Financial Information

The following unaudited pro forma financial information of the Company, which reflect the sale of the Company’s interests in the Brickell Assemblage to the Purchaser, are filed as Exhibit 99.1 to this Current Report.

  • Unaudited Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2025
  • Unaudited Pro Forma Consolidated Statements of Operations for the nine months ended September 30, 2025 and the year ended December 31, 2024

(d) The following exhibits are filed with this report:

Exhibit No. Description
99.1 Unaudited Pro Forma Condensed Consolidated Financial Statements of Aimco and Aimco OP L.P.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: December 29, 2025
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
/s/ H. Lynn C. Stanfield
H. Lynn C. Stanfield
Executive Vice President and Chief Financial Officer
AIMCO OP L.P.
By: Aimco OP GP, LLC, its general partner<br><br>By: Apartment Investment and Management Company, its managing member
/s/ H. Lynn C. Stanfield
H. Lynn C. Stanfield
Executive Vice President and Chief Financial Officer

EX-99.1

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

AIMCO OP L.P.

(Unaudited)

On December 22, 2025, the Company completed the sale of the Brickell Assemblage, which includes The Yacht Club Apartments and the adjacent 1001 Brickell Bay Drive office building located in Miami, Florida, for $520 million (the “Brickell Assemblage Sale”). The sale included $85 million of transferable seller financing notes (“Seller Financing Notes”) provided from Aimco to the buyer at closing. The Seller Financing Notes have initial terms of 24 months with compounding interest rates that increase from 12% to 16% after twelve months, as well as exit fees of 3%. The Seller Financing Notes also allow for two successive one-year renewal options at the purchaser's election, upon which the interest rates increase to 20% and 24%, respectively.

On October 3, 2025, the Company sold the final property in its Boston portfolio, Royal Crest Estates (Nashua), for $250 million (the “Nashua Sale”). In connection with the closing, non-recourse property debt with a principal balance of $173.4 million was assumed by the purchaser. The pro forma financial information giving effect to the Nashua Sale was previously voluntarily filed on the Company's Current Report on Form 8-K/A, filed with the SEC on October 14, 2025, and is incorporated herein by reference. As the Nashua Sale occurred after September 30, 2025, we elected to also give effect to the Nashua Sale in the pro forma financial information included herein.

The unaudited pro forma condensed consolidated financial statements presented below have been prepared in accordance with Article 11 of Regulation S-X and were derived from the Company’s historical consolidated financial statements. The unaudited pro forma condensed consolidated balance sheet as of September 30, 2025, reflects the Brickell Assemblage Sale, Nashua Sale and related adjustments as if they occurred on such date. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2025, and for the year ended December 31, 2024, reflect the Brickell Assemblage Sale and related adjustments as if it occurred on January 1, 2024. Since the Nashua Sale met the criteria under Accounting Standards Codification 205-20, Presentation of Financial Statements – Discontinued Operations to be classified as a discontinued operation, its results of operations have already been excluded from net (income) loss from continuing operations.

The unaudited pro forma condensed consolidated financial statements and the accompanying notes should be read in conjunction with the Company's:

– Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the "SEC") on February 24, 2025;

– Quarterly Report on Form 10-Q for the three months ended September 30, 2025, filed with the SEC on November 10, 2025; and

– Current Report on Form 8-K/A, filed with the SEC on October 14, 2025.

The unaudited pro forma condensed consolidated financial information is provided for informational purposes only and does not purport to represent the Company’s actual financial condition or results of operations had the sale of the Brickell Assemblage occurred on the dates indicated, nor does it project the Company’s results of operations or financial condition for any future period or date. The Company has prepared the unaudited pro forma condensed consolidated financial information based on available information using certain assumptions that it believes are reasonable. As a result, the actual results reported by the Company in periods following the sale of the Brickell Assemblage may differ materially from this unaudited pro forma condensed consolidated financial information.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

As of September 30, 2025

(In thousands, except share data)

Nashua Sale Pro Forma (Adjusted for Nashua Sale) Brickell Assemblage Sale Pro Forma (Combined)
(b) (c)
ASSETS
Buildings and improvements 1,143,707 $ $ 1,143,707 $ $ 1,143,707
Land 242,927 242,927 242,927
Total real estate 1,386,634 1,386,634 1,386,634
Accumulated depreciation (336,748 ) (336,748 ) (336,748 )
Net real estate 1,049,886 1,049,886 1,049,886
Cash and cash equivalents 404,379 68,676 473,055 269,229 (c1) 742,284
Restricted cash 20,679 20,679 20,679
Notes receivable 60,150 60,150 85,000 (c2) 145,150
Right-of-use lease assets - finance leases 106,758 106,758 106,758
Other assets, net 83,152 83,152 (2,007 ) (c1) 81,145
Assets from discontinued operations and held for sale, net 351,765 (75,912 ) 275,853 (275,853 ) (c3)
Total assets 2,076,769 $ (7,236 ) $ 2,069,533 $ 76,369 $ 2,145,902
LIABILITIES AND EQUITY
Non-recourse property debt, net 444,847 $ $ 444,847 $ $ 444,847
Non-recourse construction loans and bridge financing, net 383,685 383,685 383,685
Total indebtedness 828,532 828,532 828,532
Deferred tax liabilities 102,766 102,766 (102,766 ) (c4)
Lease liabilities - finance leases 124,403 124,403 124,403
Dividends payable 333,480 333,480 333,480
Accrued liabilities and other 97,707 12,852 110,559 46,254 (c5) 156,813
Liabilities related to discontinued operations and assets held for sale, net 334,624 (174,569 ) 160,055 (160,055 ) (c3)
Total liabilities 1,821,512 (161,717 ) 1,659,795 (216,567 ) 1,443,228
Redeemable noncontrolling interests in consolidated real estate partnerships 151,666 151,666 151,666
Equity (510,587,500 shares authorized at both September 30, 2025 and December 31, 2024):
Common Stock, 0.01 par value, 140,158,784 and 136,351,966 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 1,402 1,402 1,402
Additional paid-in capital 431,613 2,277 433,890 4,354 438,244
Retained earnings (deficit) (371,027 ) 146,948 (224,079 ) $ 278,615 54,536
Total Aimco equity 61,988 149,225 211,213 282,969 494,182
Noncontrolling interests in consolidated real estate partnerships 39,420 39,420 39,420
Common noncontrolling interests in Aimco Operating Partnership 2,183 5,256 7,439 9,967 17,406
Total equity 103,591 154,481 258,072 292,936 (c6) 551,008
Total liabilities and equity 2,076,769 $ (7,236 ) $ 2,069,533 $ 76,369 $ 2,145,902

All values are in US Dollars.

See accompanying notes to the pro forma condensed consolidated financial statements.

AIMCO OP L.P.

PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

As of September 30, 2025

(In thousands, except unit data)

(Unaudited)

As Reported Nashua Sale Pro Forma (Adjusted for Nashua Sale) Brickell Assemblage Sale Pro Forma
(a) (b) (c)
ASSETS
Buildings and improvements $ 1,143,707 $ $ 1,143,707 $ $ 1,143,707
Land 242,927 242,927 242,927
Total real estate 1,386,634 1,386,634 1,386,634
Accumulated depreciation (336,748 ) (336,748 ) (336,748 )
Net real estate 1,049,886 1,049,886 1,049,886
Cash and cash equivalents 404,379 68,676 473,055 269,229 (c1) 742,284
Restricted cash 20,679 20,679 20,679
Notes receivable 60,150 60,150 85,000 (c2) 145,150
Right-of-use lease assets - finance leases 106,758 106,758 106,758
Other assets, net 83,152 83,152 (2,007 ) (c1) 81,145
Assets from discontinued operations and held for sale, net 351,765 (75,912 ) 275,853 (275,853 ) (c3)
Total assets $ 2,076,769 $ (7,236 ) $ 2,069,533 $ 76,369 $ 2,145,902
LIABILITIES AND EQUITY
Non-recourse property debt, net $ 444,847 $ $ 444,847 $ $ 444,847
Non-recourse construction loans and bridge financing, net 383,685 383,685 383,685
Total indebtedness 828,532 828,532 828,532
Deferred tax liabilities 102,766 102,766 (102,766 ) (c4)
Lease liabilities - finance leases 124,403 124,403 124,403
Dividends payable 333,480 333,480 333,480
Accrued liabilities and other 97,707 12,852 110,559 46,254 (c5) 156,813
Liabilities related to discontinued operations and assets held for sale, net 334,624 (174,569 ) 160,055 (160,055 ) (c3)
Total liabilities 1,821,512 (161,717 ) 1,659,795 (216,567 ) 1,443,228
Redeemable noncontrolling interests in consolidated real estate partnerships 151,666 151,666 151,666
Partners’ capital:
General Partner and Special Limited Partner 61,988 149,225 211,213 282,969 494,182
Limited Partners 2,183 5,256 7,439 9,967 17,406
Partners’ capital attributable to Aimco Operating Partnership 64,171 154,481 218,652 292,936 511,588
Noncontrolling interests in consolidated real estate partnerships 39,420 39,420 39,420
Total partners’ capital 103,591 154,481 258,072 292,936 (c6) 551,008
Total liabilities and partners’ capital $ 2,076,769 $ (7,236 ) $ 2,069,533 $ 76,369 $ 2,145,902

See accompanying notes to the pro forma condensed consolidated financial statements.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the nine months ended September 30, 2025

(In thousands, except per share data)

(Unaudited)

As Reported Brickell Assemblage Sale Pro Forma
(d) (e)
REVENUES
Rental and other property revenues $ 103,847 $ (21,168 ) $ 82,679
OPERATING EXPENSES
Property operating expenses 51,192 (9,940 ) 41,252
Depreciation and amortization 44,922 (617 ) 44,305
General and administrative expenses 23,502 23,502
Impairment on real estate 57,373 57,373
Total operating expenses 176,989 (10,557 ) 166,432
Interest income 5,166 11,669 16,835
Interest expense (44,214 ) 7,969 (36,245 )
Realized and unrealized gains (losses) on interest rate contracts (434 ) (28 ) (462 )
Realized and unrealized gains (losses) on equity investments (5,475 ) (5,475 )
Other income (expense), net 359 61 420
Income (loss) from continuing operations before income tax (117,740 ) 9,060 (108,680 )
Income tax benefit (expense) (5,370 ) (1,009 ) (6,379 )
Net income (loss) from continuing operations (123,110 ) 8,051 (115,059 )
Net (income) loss from continuing operations attributable to redeemable noncontrolling<br>   interests in consolidated real estate partnerships (9,411 ) (9,411 )
Net (income) loss from continuing operations attributable to noncontrolling interests<br>   in consolidated real estate partnerships (633 ) (633 )
Net (income) loss from continuing operations attributable to common noncontrolling <br>   interests in Aimco Operating Partnership 6,103 (392 ) 5,711
Net income (loss) from continuing operations attributable to Aimco $ (127,051 ) $ 7,659 $ (119,392 )
Net income (loss) from continuing operations attributable to Aimco per common share – basic $ (0.95 ) $ (0.89 )
Net income (loss) from continuing operations attributable to Aimco per common share – diluted $ (0.95 ) $ (0.89 )
Weighted-average common shares outstanding – basic 137,738 137,738
Weighted-average common shares outstanding – diluted 137,738 137,738

See accompanying notes to the pro forma condensed consolidated financial statements.

AIMCO OP L.P.

PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the nine months ended September 30, 2025

(In thousands, except per unit data)

(Unaudited)

As Reported Brickell Assemblage Sale Pro Forma
(d) (e)
REVENUES
Rental and other property revenues $ 103,847 $ (21,168 ) $ 82,679
OPERATING EXPENSES
Property operating expenses 51,192 (9,940 ) 41,252
Depreciation and amortization 44,922 (617 ) 44,305
General and administrative expenses 23,502 23,502
Impairment on real estate 57,373 57,373
Total operating expenses 176,989 (10,557 ) 166,432
Interest income 5,166 11,669 16,835
Interest expense (44,214 ) 7,969 (36,245 )
Realized and unrealized gains (losses) on interest rate contracts (434 ) (28 ) (462 )
Realized and unrealized gains (losses) on equity investments (5,475 ) (5,475 )
Other income (expense), net 359 61 420
Income (loss) from continuing operations before income tax (117,740 ) 9,060 (108,680 )
Income tax benefit (expense) (5,370 ) (1,009 ) (6,379 )
Net income (loss) from continuing operations (123,110 ) 8,051 (115,059 )
Net (income) loss from continuing operations attributable to redeemable noncontrolling<br>   interests in consolidated real estate partnerships (9,411 ) (9,411 )
Net (income) loss from continuing operations attributable to noncontrolling interests<br>   in consolidated real estate partnerships (633 ) (633 )
Net income (loss) from continuing operations attributable to Aimco Operating <br>     Partnership $ (133,154 ) $ 8,051 $ (125,103 )
Net income (loss) from continuing operations attributable to Aimco Operating Partnership per common unit – basic $ (0.95 ) $ (0.89 )
Net income (loss) from continuing operations attributable to Aimco Operating Partnership per common unit – diluted $ (0.95 ) $ (0.89 )
Weighted-average common units outstanding – basic 144,798 144,798
Weighted-average common units outstanding – diluted 144,798 144,798

See accompanying notes to the pro forma condensed consolidated financial statements.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the year ended December 31, 2024

(In thousands, except per share data)

(Unaudited)

As Reported Brickell Assemblage Sale Pro Forma
(d) (e)
REVENUES
Rental and other property revenues $ 137,700 $ (29,478 ) $ 108,222
OPERATING EXPENSES
Property operating expenses 68,077 (12,548 ) 55,529
Depreciation and amortization 77,133 (21,376 ) 55,757
General and administrative expenses 32,837 32,837
Total operating expenses 178,047 (33,924 ) 144,123
Interest income 9,643 10,043 19,686
Interest expense (58,667 ) 9,640 (49,027 )
Mezzanine investment income (loss), net (2,432 ) (2,432 )
Realized and unrealized gains (losses) on interest rate contracts 1,752 (321 ) 1,431
Realized and unrealized gains (losses) on equity investments (49,504 ) (49,504 )
Gain on dispositions of real estate 10,600 219,021 229,621
Other income (expense), net (5,581 ) 136 (5,445 )
Income (loss) from continuing operations before income tax (134,536 ) 242,965 108,429
Income tax benefit (expense) 11,071 53,765 64,836
Net income (loss) from continuing operations (123,465 ) 296,730 173,265
Net (income) loss from continuing operations attributable to redeemable noncontrolling interests in consolidated real estate partnerships (13,958 ) (13,958 )
Net (income) loss from continuing operations attributable to noncontrolling interests in consolidated real estate partnerships 1,849 1,849
Net (income) loss from continuing operations attributable to common noncontrolling interests in Aimco Operating Partnership 7,082 (15,579 ) (8,497 )
Net income (loss) from continuing operations attributable to Aimco $ (128,492 ) $ 281,151 $ 152,659
Net income (loss) from continuing operations attributable to Aimco per common share – basic $ (0.94 ) $ 1.09
Net income (loss) from continuing operations attributable to Aimco per common share – diluted $ (0.94 ) $ 1.09
Weighted-average common shares outstanding – basic 138,496 138,496
Weighted-average common shares outstanding – diluted 138,496 138,496

See accompanying notes to the pro forma condensed consolidated financial statements.

AIMCO OP L.P.

PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the year ended December 31, 2024

(In thousands, except per unit data)

(Unaudited)

As Reported Brickell Assemblage Sale Pro Forma
(d) (e)
REVENUES
Rental and other property revenues $ 137,700 $ (29,478 ) $ 108,222
OPERATING EXPENSES
Property operating expenses 68,077 (12,548 ) 55,529
Depreciation and amortization 77,133 (21,376 ) 55,757
General and administrative expenses 32,837 32,837
Total operating expenses 178,047 (33,924 ) 144,123
Interest income 9,643 10,043 19,686
Interest expense (58,667 ) 9,640 (49,027 )
Mezzanine investment income (loss), net (2,432 ) (2,432 )
Realized and unrealized gains (losses) on interest rate contracts 1,752 (321 ) 1,431
Realized and unrealized gains (losses) on equity investments (49,504 ) (49,504 )
Gain on dispositions of real estate 10,600 219,021 229,621
Other income (expense), net (5,581 ) 136 (5,445 )
Income (loss) from continuing operations before income tax (134,536 ) 242,965 108,429
Income tax benefit (expense) 11,071 53,765 64,836
Net income (loss) from continuing operations (123,465 ) 296,730 173,265
Net (income) loss from continuing operations attributable to redeemable noncontrolling interests in consolidated real estate partnerships (13,958 ) (13,958 )
Net (income) loss from continuing operations attributable to noncontrolling interests in consolidated real estate partnerships 1,849 1,849
Net income (loss) from continuing operations attributable to Aimco Operating <br>     Partnership $ (135,574 ) $ 296,730 $ 161,156
Net income (loss) from continuing operations attributable to Aimco Operating Partnership per common unit – basic $ (0.94 ) $ 1.09
Net income (loss) from continuing operations attributable to Aimco Operating Partnership per common unit – diluted $ (0.94 ) $ 1.09
Weighted-average common units outstanding – basic 146,120 146,120
Weighted-average common units outstanding – diluted 146,120 146,120

See accompanying notes to the pro forma condensed consolidated financial statements.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY AND AIMCO OP L.P.

NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Pro Forma Adjustments

(a) Reflects our consolidated balance sheet as of September 30, 2025, as presented in the historical financial statements and notes thereto in our Quarterly Report on Form 10-Q for the period ended September 30, 2025.

(b) Reflects the historical financial position of the property included in the Nashua Sale as of September 30, 2025, in addition to certain pro forma adjustments described within our Current Report on Form 8-K/A filed on October 14, 2025, adjusted for differences in property basis and working capital between June 30, 2025, and September 30, 2025.

(c) Reflects the historical financial position of the properties included in the Brickell Assemblage as of September 30, 2025, in addition to certain pro forma adjustments described below that are a direct result of the transaction.

(c1) The following table summarizes the estimated initial net cash proceeds upon the sale of the Brickell Assemblage:

Sales price $ 520,000
Less: Repayment of principal debt and interest (158,332 )
Less: Seller financing notes (1) (85,000 )
Less: Estimated transaction costs at time of closing (4,856 )
Less: Estimated working capital adjustment (1,808 )
Less: Debt extinguishment costs (775 )
Estimated initial net cash proceeds at time of closing $ 269,229
Less: Estimated income tax expense (2) (46,686 )
Less: Transaction costs paid prior to closing (2,007 )
Estimated initial net cash proceeds $ 220,536

(1) Refer to (c2) for further information.

(2) Estimated income taxes associated with the gain on sale to be remitted to the Internal Revenue Service ("IRS") reflected as an accrued liability and other. Refer to (c5) for further information.

(c2) In accordance with the Brickell Agreement, the Purchaser financed $85 million of the $520 million purchase price, with transferable Seller Financing Notes from Aimco. For the purposes of these Pro Forma Condensed Consolidated Financial Statements, the Seller Financing Notes have been reflected at the aggregate stated principal amount of $85 million. This amount is subject to change upon finalizing assessments of fair value and current expected credit losses, which will be reflected in our Annual Report on Form 10-K for the year ended December 31, 2025.

(c3) Reflects the assets and liabilities, inclusive of estimated net working capital as defined in the Brickell Agreement, transferred upon the sale of the Brickell Assemblage.

(c4) Reflects the removal of the deferred tax liability that arose from the corporate structure used to complete the acquisition of 1001 Brickell, as triggered by the sale of the Brickell Assemblage. For the purposes of these Pro Forma Condensed Consolidated Financial Statements, no deferred taxes have been reflected for the Seller Financing Notes as they have been reflected at the aggregate stated principal amount of $85 million, as noted in (c2) above. This amount is subject to change upon finalizing assessments of fair value and current expected credit losses, which will be reflected in our Annual Report on Form 10-K for the year ended December 31, 2025.

(c5) Reflects recognition of the estimated income tax expense, partially offset by the payment of accrued interest associated with the non-recourse property debt encumbering the Brickell Assemblage. The debt was repaid at closing.

(c6) Reflects the estimated gain on sale we would have recognized upon completion of the sale transaction as if the sale occurred as of September 30, 2025, offset by the estimated income tax expense and write-off of debt issuance costs, net of other adjustments, calculated as follows:

Sales price $ 520,000
Less: Estimated transaction costs at time of closing (4,856 )
Less: Transaction costs paid prior to closing (2,007 )
Less: Brickell Assemblage basis (275,473 )
Pro forma gain on sale $ 237,664
Removal of deferred tax liability 102,766
Estimated income tax expense (46,686 )
Loss on debt extinguishment, net (808 )
Net impact to total equity and total partners' capital $ 292,936

(d) Reflects our consolidated results of operations for the nine months ended September 30, 2025, and the year ended December 31, 2024, as presented in the historical financial statements and notes thereto in our Quarterly Report on Form 10-Q for the three months ended September 30, 2025, and the Company's Unaudited Pro Forma Consolidated Financial Statements for the year ended December 31, 2024 filed as Exhibit 99.1 to its Current Report on Form 8-K/A filed on October 14, 2025, herein incorporated by reference.

(e) Reflects historical revenues and expenses of the properties included in the Brickell Assemblage, and associated non-recourse property debt, for the nine months ended September 30, 2025, and the year ended December 31, 2024. The estimated pro forma gain on sale recognized upon completion of the sale transaction is reflected as if the sale occurred on January 1, 2024. Additionally, reflects the removal of historical income tax benefit (expense) recognized at the taxable REIT subsidiary that held our investment in 1001 Brickell, the removal of the deferred tax liability that arose from the corporate structure used to complete the acquisition of 1001 Brickell, the recognition of loss on debt extinguishment, including the write-off of deferred issuance costs, and the recognition of interest income from the Seller Financing Notes based on the contractual interest rates and related tax effects, as if the Brickell Assemblage sale occurred on January 1, 2024. While Aimco plans to monetize the Seller Financing Notes, they have been reflected as held for investment throughout all periods for the purposes of these Pro Forma Condensed Consolidated Financial Statement. The interest income amount is subject to change upon finalizing assessments of fair value and current expected credit losses, which will be reflected in our Annual Report on Form 10-K for the year ended December 31, 2025.