ATLANTA, GA - Preferred Apartment Communities, Inc. announced its acquisition of three multifamily communities aggregating 928 apartment homes located in Atlanta, Georgia, Austin, Texas and suburban Raleigh, North Carolina utilizing a portion of the net proceeds from PAC's recently completed $40.0 million private placement transaction. Following the closings of these acquisitions, the multifamily communities will each be rebranded as "a Preferred Apartment Community."
Ashford Park, located in Atlanta, Georgia, was completed in 1992 and consists of 408 apartment homes, with a current physical occupancy of approximately 93.9%. PAC will continue to use the Ashford Park name. PAC acquired Ashford Park for a purchase price of approximately $39.4 million, subject to customary post-closing pro rations. In connection with the acquisition of Ashford Park, PAC expects to refinance the existing first mortgage debt on Ashford Park with a portion of the net proceeds from its recently completed private placement and with a loan of approximately $25.6 million originated by Prudential Multifamily Mortgage, Inc. PAC expects the new loan will be transferred to Freddie Mac within 60 days. It is expected that the new financing will be non-recourse, will bear a fixed interest rate of 3.13% per annum and will mature in February 2020. In addition, there are expected to be no guaranties of the new loan provided by PAC.
McNeil Ranch, located in Austin, Texas, was completed in 1999 and consists of 192 apartment homes, with a current physical occupancy of approximately 97.4%. PAC will continue to use the McNeil Ranch name. PAC acquired McNeil Ranch for a purchase price of approximately $21.0 million, subject to customary post-closing pro rations. In connection with the acquisition McNeil Ranch, PAC expects to refinance the existing first mortgage debt on McNeil Ranch with a portion of the net proceeds from its recently completed private placement and with a loan of approximately $13.6 million originated by Jones Lang LaSalle Operations, L.L.C. PAC expects the new loan will be transferred to Freddie Mac within 60 days. It is expected that the new financing will be non-recourse, will bear a fixed interest rate of 3.13% per annum and will mature in February 2020. In addition, there are expected to be no guaranties of the new loan provided by PAC.
Lake Cameron, located in suburban Raleigh, North Carolina, was completed in 1997 and consists of 328 apartment homes, with a current physical occupancy of approximately 92.4%. PAC will continue to use the Lake Cameron name. PAC acquired Lake Cameron for a purchase price of approximately $30.4 million, subject to customary post-closing pro rations. In connection with the acquisition of Lake Cameron, PAC expects to refinance the existing first mortgage debt on Lake Cameron with a portion of the net proceeds from its recently completed private placement and with a loan of approximately $19.8 million originated by Jones Lang LaSalle Operations, L.L.C. PAC expects the new loan will be transferred to Freddie Mac within 60 days. It is expected that the new financing will be non-recourse, will bear a fixed interest rate of 3.13% per annum and will mature in February 2020. In addition, there are expected to be no guaranties of the new loan provided by PAC.
Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.