PAC Plans Galleria 75 Redevelopment in Atlanta
- Nov 07, 2016
by Evelina Croitoru
Atlanta—Maryland-based Preferred Apartment Communities Inc. (PAC), has announced the purchase of Galleria 75, a 7-acre site recently refined to allow mixed-use redevelopment, including up to 600 multifamily units. The financial details of the transaction were not disclosed. The property is located at the corner of Cumberland Boulevard and Cobb Galleria Parkway immediately north of the Encore multifamily property development and south of the Cobb Energy Performing Arts Center.
“The property currently maintains a 110,000 square foot office property, which offers a unique combination of in-place yield and future redevelopment potential,” Daniel DuPree, PAC CIO, said in a prepared statement. “Concurrent with our acquisition, we were able to rezone the property to allow mixed-use redevelopment, including up to 600 multifamily units. Because the existing office is stabilized and generating excellent cash flow we have the flexibility to continue to own and operate the property on an “as-is” basis until such time we believe the market will reward us for adding density,” John Williams, chairman & CEO with PAC, added in prepared remarks.
PAC purchased the newly acquired asset through a wholly owned subsidiary and has financed the acquisition by assuming the existing first mortgage loan from RGA Reinsurance Co. with a principal balance of roughly $5.9 million. The maturity date of the loan is 2022 and it has a 4.25 percent fixed interest rate per annum. PAC has provided no loan guarantees.
Image courtesy of Colliers International