Tempe, Ariz.—Preferred Apartment Communities Inc. has announced the acquisition of a student housing community adjacent to Arizona State University in Tempe. The company purchased the 225-unit, 640-bed campus asset through its wholly-owned subsidiary Preferred Campus Communities LLC.
“We believe this property is a premier, well located student housing asset, providing residents with immediate access to the Arizona State campus. We feel the modern features, including a computer lab, two interior court yards, a 24-hour fitness center, and other student-centered amenities are extremely attractive to the resident base,” Paul Cullen, PAC’s chief marketing officer & CEO of PCC, said in a prepared statement.
The company financed the acquisition through its recently closed revolving credit facility with Freddie Mac and KeyBank, which provides for aggregate borrowings of up to a maximum amount of $200 million. For this transaction, PAC borrowed $37.5 million at a floating interest rate 220 basis points above 30-day LIBOR for a five-year term.
Image courtesy of Arizona State University