LUBBOCK, TX - Preferred Apartment Communities announced that it acquired The Bloc, a newly constructed 140-unit, 556-bed, student housing community serving Texas Tech University in the highly desirable Overton District of Lubbock, Texas. PAC acquired this asset through its wholly-owned subsidiary Preferred Campus Communities.
"We remain focused on our multifamily community operations, including our student housing subsidiary," said Daniel M. DuPree, Chairman and Chief Executive Officer of Preferred Apartment Communities, Inc. Mr. DuPree added, "This acquisition increases the size of the PCC portfolio to seven student housing communities across four states.
" Paul Cullen, Chief Executive Officer of PCC, added, "The Bloc is one of Texas Tech's premier and newest student housing locations offering both three and four bedroom apartment homes with townhome and traditional garden flat options. The community features the only rooftop lounge in Lubbock, a resort style pool with cabanas, a 24-hour fitness center and resident study rooms."
The Company financed the acquisition utilizing a non-recourse first mortgage bridge loan from TH Commercial Mortgage LLC managed by Pine River Capital. The first mortgage loan is approximately $29.0 million, bears interest at a floating rate of 355 basis points over the 30-day LIBOR and has an interest only three-year term. There are no loan guaranties provided by PAC or our operating partnership.
Preferred Campus Communities is a wholly-owned indirect subsidiary of Preferred Apartment Communities. PCC was formed to acquire off-campus student housing communities in select targeted markets with growing enrollments throughout the United States.