Source: Preferred Apartment Communities / #Apartments #Multifamily
ATLANTA, GA - Preferred Apartment Communities announced the acquisition of Citypark View, a newly constructed 284-unit Class A multifamily community in Charlotte, North Carolina, for a purchase price of approximately $32.7 million, exclusive of acquisition-related and financing-related transaction costs. Citypark View is currently approximately 96% occupied.
"The opportunity to acquire this new and attractive community came through a mezzanine loan that PAC made for the development of the community over two years ago. This demonstrates again the previously unknown large value inherent in these loans," said Daniel M. DuPree, the Company's Chief Investment Officer and Vice Chairman.
Leonard A. Silverstein, PAC's President and Chief Operating Officer added, "This acquisition, together with our other recent acquisitions, continues to lower the average age of our portfolio, which we believe is the lowest in the industry."
PAC acquired this community through a wholly-owned subsidiary and financed the acquisition utilizing a first mortgage loan from Jones Lang LaSalle, which intends to assign the loan to Freddie Mac within 60 days. The first mortgage loan is $22.1 million, bears interest at a fixed rate of 3.27% per annum, matures July 1, 2022 and amortizes based on a 30-year schedule.
Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.