JACKSONVILLE, FL - Preferred Apartment Communities announced the acquisition of Lux, a 265-unit Class A multifamily community in Jacksonville, Florida constructed in 2017. Lux is located adjacent to Sorrel, a Class A multifamily community that PAC acquired in 2016.
"This acquisition creates operational efficiencies across the two properties and grows our market presence in the highly desirable Intracoastal West area of Jacksonville to over 550 units," said John A. Williams, the Company's Chief Executive Officer. Mr. Williams added, "The acquisition of Lux demonstrates our commitment to our strategy of adding newly constructed Class A multifamily communities to our portfolio, which we believe will translate into sustainable and growing cash flows."
Jeff Sherman, Executive Vice President of Multifamily Investments stated, "The acquisition of Lux is a great start to 2018 after a highly successful 2017 in which PAC acquired 13 Class A multifamily and student housing communities totaling over 3,200 units and originated five real estate investment loans for the development of Class A multifamily and student housing communities totaling over 1,400 units."
PAC acquired this community through a wholly-owned subsidiary and financed the acquisition utilizing a non-recourse first mortgage loan from Nationwide Life Insurance Company. The principal balance on the first mortgage loan is approximately $31.5 million, bears interest at a fixed rate of 3.91% per annum, has a 12-year term and amortizes based on a 30-year schedule. There are no loan guaranties provided by PAC or our operating partnership.
Mr. Sherman added, "Our multifamily and student housing acquisition pipeline under our real estate loan investment program, which typically gives PAC the option to acquire Class A multifamily and student housing communities at pre-negotiated discounts, now aggregates 19 Class A multifamily and student housing communities representing over 5,000 units."