American International Group (AIG) sold off much of its onetime $24 billion portfolio of real estate holdings in the wake of the financial crisis that crippled the company, but it’s now returning to the U.S. property market.
As the Wall Street Journal reports, AIG is looking to branch out from its current holdings, restricted to Europe, and has contacted apartment building developers in major urban areas, including New Jersey, California and Florida, according to people familiar with the matter. They note that the company likely hopes to amass enough holdings to eventually yield hundreds of millions of dollars per year.
While apartments are not as flashy as the trophy properties AIG once owned, they are a potentially good bet, as homebuyers remain on the sidelines and rents rise.
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