ATLANTA, Feb. 28, 2018 /PRNewswire/ — Preferred Apartment Communities, Inc. (APTS) ("PAC" or the "Company") today announced the acquisition of a 310-unit Class A multifamily community in the Atlanta, Georgia MSA constructed in 2016 called Green Park. "The acquisition of Green Park came through a real estate loan investment that PAC made over three years ago, the proceeds of which were used to partially fund the development of Green Park," said Leonard A. Silverstein, the President and Chief Operating Officer for PAC. Mr. Silverstein added, "This acquisition further demonstrates the success of our unique real estate loan investment program, which continues to create a pipeline of attractive, off-market acquisition opportunities at contractual discounts, while providing compelling returns during construction."
Preferred Apartment Communities
The Company financed the acquisition utilizing a non-recourse first mortgage loan provided by Allianz. KeyBank National Association placed the loan for the Company. The first mortgage loan is approximately $39.75 million, bears interest at a fixed rate of 4.09% per annum, has a ten-year term and amortizes based on a 30-year schedule. There are no loan guaranties provided by PAC or our operating partnership.
About Preferred Apartment Communities, Inc.
Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States. As part of our business strategy, we may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and we may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. As a secondary strategy, we may acquire or originate senior mortgage loans, subordinate loans or real estate loans secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily related assets and invest a lesser portion of our assets in other real estate related investments, including other income-producing property types, senior mortgage loans, subordinate loans or real estate loans secured by interests in other income-producing property types, membership or partnership interests in other income-producing property types as determined by our manager as appropriate for us. At December 31, 2017, the Company was the approximate 97.8% owner of Preferred Apartment Communities Operating Partnership, L.P., the Company’s operating partnership. Preferred Apartment Communities, Inc. has elected to be taxed as a real estate investment trust under the Internal Revenue Code of 1986, as amended, commencing with its tax year ended December 31, 2011. Learn more at www.pacapts.com.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of forward-looking terminology such as "may", "trend", "will", "expects", "plans", "estimates", "anticipates", "projects", "intends", "believes", "goals", "objectives", "outlook" and similar expressions. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, those disclosed in PAC’s filings with the Securities and Exchange Commission. PAC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.