Preferred Apartment Communities Acquires Four Apartment Communities
- Oct 01, 2014
Atlanta–Preferred Apartment Communities (PAC) announced this week it has acquired four multifamily communities comprising a total of 1,397 units.
Located in Kansas City, Kan.; Nashville, Tenn.; and Dallas and Houston the apartment communities sold for a total of approximately $182 million, not including acquisition and financing-related transaction costs.
“This portfolio acquisition enhances PAC’s presence in our targeted markets, which we believe creates greater operating efficiencies and economies of scale,” says Leonard A. Silverstein, president and chief operating officer of PAC.
John A. Williams, chairman and chief executive officer of PAC, reports company officials are convinced the four communities will be excellent additions to PAC’s portfolio.
“We believe the acquisition of these communities will be accretive to our stockholders in both the short and long term,” he observes.
Separate first mortgage loans for each property from Keybank National Association were used to finance the acquisitions. Keybank National Association intends to assign the loans to Freddie Mac within 60 days, for an aggregate amount of approximately $119.9 million in addition to available funds.
Two of the first mortgage loans, aggregating approximately $59.6 million, bear maturity dates of October 1, 2021, have fixed interest rates of 3.68 percent per year, are interest-only for the first three years and then amortize based on a 30-year amortization.
The other two first mortgage loans, aggregating approximately $60.3 million, have maturity dates of October 1, 2019, fixed interest rates of 3.18 percent per year and amortize based on a 30-year amortization.
PAC, which acquired the communities through four newly-created wholly-owned subsidiaries, is a Maryland-based corporation involved in acquiring and operating multifamily properties in targeted markets across the United States.
PAC acquired the communities through four new wholly-owned subsidiaries.