LOUISVILLE, KY - Preferred Apartment Communities announced the acquisition of a 242-unit Class A multifamily community in Louisville, Kentucky constructed in 2012 called Claiborne Crossing.
"Claiborne Crossing is an exceptional Class A multifamily community located in a highly desirable submarket of Louisville. The assumed HUD debt is attractive and the product quality and unit features are excellent," said John A. Williams, PAC's Chairman and Chief Executive Officer.
PAC acquired this community through a wholly-owned subsidiary and financed the acquisition by assuming a first mortgage loan insured by the U.S. Department of Housing and Urban Development.
The remaining principal balance on the HUD loan is approximately $27.1 million, bears interest at a fixed rate of 3.34% per annum and has approximately 37 years of term remaining.
There are no loan guaranties provided by us or our operating partnership.
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 may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and make real estate related 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.