Gaining Ground in Texas
- Jan 15, 2015
Houston—Preferred Apartment Communities Inc. has acquired two multifamily communities near Houston, totaling 520 units, for approximately $76 million, exclusive of acquisition- and financing-related transaction costs.
The two communities are the Avenues at Northpointe in Tomball, Texas, with 280 units, and the Avenues at Cypress in Cypress, Texas, with 240 units.
“We’re very pleased to have the opportunity to acquire these Class A multifamily assets,” Daniel DuPree, PAC’s chief investment officer and vice chairman, says. “These assets are located in strong and growing submarkets in Houston, and have superior finishes and attached garages.”
The Avenues at Northpointe feature granite countertops and a chef’s kitchen, complete with upscale wood grain flooring. The Avenues at Cypress features a gourmet kitchen with stainless steel appliances and custom wood cabinetry.
PAC is currently in discussion with Freddie Mac to provide a first mortgage loan on Cypress and with Fannie Mae to provide a first mortgage loan on Northpointe at approximately 65 percent of the underwritten value of the acquired communities, or approximately $50.1 million in the aggregate. Both loans are expected to have a seven-year maturity.
“These two transactions reflect PAC’s continued acquisition growth strategy,” Leonard Silverstein, PAC’s president and chief operating officer, says. “We intend to fund these acquisitions with first mortgage debt financing for each community, together with cash on hand, borrowings under our senior secured credit facility and other available capital sources. As with our most recent acquisitions, we do not anticipate the need for capital raised through a traditional secondary common stock offering.”