SARASOTA, FL - Preferred Apartment Communities announced that on January 27, 2015 Preferred Apartment Communities Operating Partnership, its operating partnership, signed a Purchase and Sale Contract to acquire a 237-Unit multifamily community in Sarasota, Florida.
"We're very pleased to have the opportunity to acquire this superb Class A multifamily property," said Daniel M. DuPree, the Company's Chief Investment Officer and Vice Chairman. DuPree continued, "This asset is located in a strong and growing market and features high quality interior finishes."
Leonard A. Silverstein, the Company's President and Chief Operating Officer, further added, "This acquisition represents an additional investment into the expanding Florida market between Tampa and Naples." "We intend to fund this acquisition with first mortgage debt financing, together with cash on hand, borrowings under our senior secured credit facility and other available capital sources," said Silverstein.
Under the Purchase Agreement, PAC has agreed to acquire the Venue at Lakewood Ranch, a 237-unit multifamily community, located in Sarasota, Florida for an aggregate purchase price of approximately $47.4 million, exclusive of acquisition- and financing-related transaction costs. The Company has substantially completed its due diligence and expects to complete the Acquisition in May 2015.
The Company currently is in discussion with Freddie Mac to provide a first mortgage loan on Lakewood Ranch at approximately 65% of the underwritten value of Lakewood Ranch, or approximately $30.8 million. PAC expects the New Loan will have a seven year maturity, will be secured only by Lakewood Ranch, and will have no loan guaranties by the Company or PAC-OP. PAC further expects the New Loan will bear interest at a fixed rate of approximately 1.51% over the interest rate on the 7-Year United States Treasury security, which we have index-locked at 2.04%. PAC anticipates the New Loan will amortize over a 30-year term.
Source: Preferred Apartment Communities / #Apartments #Multifamily