Mid-America Establishes Fund

Mid-America Establishes Fund MEMPHIS, TN - Mid-America Apartment Communities, Inc. reported today that it has established Mid-America Multifamily Fund II, LLC ("Fund II"). The fund will be a joint venture between Mid-America and institutional capital. Targeted investment opportunities will be within Mid-America's existing Sunbelt markets and operating region. Mid-America will own a 1/3 interest in Fund II, with plans to acquire up to $250 million of apartment properties over the next eighteen months, and have a 6-8 year investment life. Fund II will focus on acquiring properties with redevelopment upside offering value creation opportunity through capital improvements, operating enhancements and restructuring in-place financing. Mid-America expects to invest a total of approximately $25 million in equity as investments are made.

Eric Bolton, CEO, said, "We've had excellent success with past investment funds, and we're excited about the opportunity to leverage Mid-America's experienced and strong re-development and operating skills. We think this new initiative provides an excellent opportunity to create value for Mid-America's shareholders."

Mid-America will earn a management fee, an asset management fee, and have the potential to earn promote fees. Mid-America will target apartment properties that are 7 years old or older for Fund II, and will continue to acquire newer properties for its own portfolio. There are no plans for Mid-America to contribute its existing properties to Fund II.

MAA is a self-administered, self-managed apartment-only real estate investment trust, which currently owns or has ownership interest in 42,390 apartment units throughout the Sunbelt region of the U.S.
Source: Mid-America Apartment Communities

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