ORLANDO, FL - Preferred Apartment Communities announced the acquisition of a 487-unit Class A multifamily community in Orlando, Florida constructed in 2008 known as Grandeville at Avalon Park.
"This asset is an excellent addition to our growing Main Street portfolio. Orlando is a great market for us and we are excited to be increasing our presence there," said John A. Isakson, PAC's Chief Capital Officer and CEO of the Main Street Apartment Homes subsidiary.
Main Street acquired this community through a wholly-owned subsidiary and financed the acquisition with a mortgage loan package from Prudential Capital Corporation. The loan package is approximately $65.0 million, bears interest at a blended floating rate of 2.45% over the 30-Day LIBOR annually, matures in May of 2019 and is an interest only loan.
Upon completion of a value add program, Main Street plans to refinance the asset with a long term mortgage insured by HUD.
Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States. As part of its business strategy, it enters into forward purchase contracts or purchase options for to-be-built multifamily communities and makes mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties.