ATLANTA, GA - Preferred Apartment Communities, Inc. announced the acquisition on September 26, 2014 of four multifamily communities with an aggregate of 1,397 units in the Kansas City, Kansas, Nashville, Tennessee, Dallas, Texas and Houston, Texas areas for an aggregate purchase price of approximately $182 million, exclusive of acquisition- and financing-related transaction costs.
"These four communities are an outstanding addition to our multifamily portfolio," said John A. Williams, PAC's Chairman and Chief Executive Officer. Williams added, "We believe the acquisition of these communities will be accretive to our stockholders in both the short and long term."
Leonard A. Silverstein, PAC's President and Chief Operating Officer, further added, "This portfolio acquisition enhances PAC's presence in our targeted markets, which we believe creates greater operating efficiencies and economies of scale."
PAC acquired the communities through four new wholly-owned subsidiaries. The acquisitions were financed utilizing separate first mortgage loans for each property from KeyBank National Association, who intends to assign the loans to Freddie Mac within 60 days, for an aggregate amount of approximately $119.9 million in addition to available funds. Two of the first mortgage loans, aggregating approximately $59.6 million, have maturity dates of October 1, 2021, have a fixed interest rate of 3.68% per annum, are interest-only for the first three years and thereafter amortize based on a 30-year amortization. The other two first mortgage loans, aggregating approximately $60.3 million, have maturity dates of October 1, 2019, have a fixed interest rate of 3.18% per annum, and amortize based on a 30-year amortization.
Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.