HOUSTON, TX - Preferred Apartment Communities, Inc. announced the acquisition on February 13, 2015 of two newly constructed Class A multifamily communities totaling 520 units in Houston, Texas.
"We're pleased to be able to strategically enhance our multifamily presence in the Houston marketplace," said Daniel M. DuPree, the Company's Chief Investment Officer and Vice Chairman.
Leonard A. Silverstein, PAC's President and Chief Operating Officer added, "These acquisitions reflect our ongoing strategy of creating greater operational efficiencies in the local and regional markets where we own multifamily communities and our continued efforts create the youngest portfolio in our industry."
The communities acquired were the Avenues at Northpointe, a 280-unit multifamily community, and the Avenues at Cypress, a 240-unit multifamily community, both located in Houston, Texas, for an aggregate purchase price of approximately $76 million, exclusive of acquisition-related and financing-related transaction costs.
PAC acquired the communities through two new wholly-owned subsidiaries. The acquisitions were financed utilizing separate first mortgage loans for each property, one from KeyBank National Association, who intends to assign the loan to Freddie Mac within 60 days, and one from Prudential Multifamily Mortgage, LLC, who intends to assign the loan to Fannie Mae within 60 days.
The Freddie Mac loan is for approximately $22.9 million, has a maturity date of March 1, 2022, has a fixed interest rate of 3.43% per annum, is interest-only for the first two years and thereafter amortizes based on a 30-year amortization.
The Fannie Mae loan is for approximately $27.9 million, has a maturity date of March 1, 2022, has a fixed interest rate of 3.16% per annum, is interest-only for the first two years and thereafter amortizes based on a 30-year amortization.