WILLIAMSBURG, VA - Preferred Apartment Communities announced the acquisition of Founders Village, a newly-constructed 247-unit Class A multifamily community in Williamsburg, Virginia.
"The opportunity to acquire this well-located and attractive community came through a real estate loan investment that PAC made for the development of the community over three years ago," said Jeff Sherman, PAC's Executive Vice President and Director of Multifamily Investments.
Leonard A. Silverstein, PAC's President and Chief Operating Officer added, "The acquisition of Founders Village further demonstrates the success of our unique real estate loan investment program, which continues to create a tremendous pipeline of new Class A multifamily communities."
PAC acquired this community through a wholly-owned subsidiary and financed the acquisition utilizing a portion of the proceeds from a 1031 exchange transaction sale earlier in the quarter and a first mortgage loan from Berkadia Commercial Mortgage LLC, which intends to assign the loan to Freddie Mac within 60 days.
The first mortgage loan is approximately $31.6 million, bears interest at a fixed rate of 4.31% per annum, matures March 31, 2027 and amortizes based on a 30-year schedule. There are no loan guaranties provided by PAC or its operating partnership.