PAC Buys Recently Built Virginia Community

The company purchased Founders Village, a 247-unit community in Williamsburg, Va., and financed the acquisition using a portion of the proceeds from a 1031 exchange sale.

Maryland-based Preferred Apartment Communities Inc. (PAC) has announced the acquisition of Founders Village, a newly constructed 247-unit Class A community in Williamsburg, Va. According to Yardi Matrix data, Oxford Properties is the asset’s former owner.

PAC purchased the 27-building property through a wholly-owned subsidiary and financed the acquisition using part of the proceeds from a 1031 exchange transaction earlier in the quarter and a first mortgage loan from Berkadia Commercial Mortgage LLC, which intends to assign the loan to Freddie Mac within two months. The first mortgage loan is roughly $32 million, bears interest at a fixed annual rate of 4.31 percent, matures March 31st 2027 and amortizes based on a 30-year schedule. There are no loan guaranties provided by PAC or its operating partnership.

“The opportunity to acquire this well-located and attractive community came through a real estate loan investment that PAC made for the development of the community over three years ago,” said PAC Executive Vice President & Director of Multifamily Investments Jeff Sherman, in a prepared statement.

Located at 2800 Ben Franklin Circle, Founders Village provides direct access to Interstate 64. The community has 88 one-, 84 two- and 26 three-bedroom units. Amenities include a fitness center, a business center, a swimming pool, as well as a clubhouse and 371 parking spaces. Nine 790-square-foot units are reserved for low income housing.

Approximately one year ago, PAC also acquired Overton Rise, a newly constructed 294-unit Class A multifamily community in Atlanta, Ga.

Images courtesy of Founders Village