PHILADELPHIA, PA - Preferred Apartment Communities announced the sale of Stone Rise, a Class A multifamily community built in 2008 and located in Philadelphia, Pennsylvania.
Stone Rise is a 216-unit community, consisting of one and two bedroom garden apartment homes, a resort-style pool, 24 hour internet cafe and fitness center, as well as many more services and amenities. Stone Rise offers close proximity to fine shops, restaurants, entertainment, a variety of walking and biking trails and community parks.
PAC sold Stone Rise for gross proceeds of approximately $42,500,000, the net proceeds of which PAC will utilize for working capital purposes including reducing the outstanding balance under its revolving line of credit facility, acquisitions, real estate loan investments and general corporate purposes.
"The financial results generated from the sale of Stone Rise, a property purchased by PAC in 2011, demonstrates our ability to execute and deliver outstanding returns to our stockholders," said John A. Isakson, Executive Vice President and Chief Financial Officer for PAC.
The property achieved an average annualized return of approximately 23% and generated a gain on sale of approximately $12.4 million.
Mr. Isakson added, "We remain committed to a disciplined strategy of carefully allocating capital to accretive investments, optimizing the operations of our owned assets and, when appropriate, opportunistically divesting certain assets in an effort to produce the best possible returns for our stockholders."