Source: Preferred Apartment Communities / #Apartments #Multifamily
NASHVILLE, TN - Preferred Apartment Communities announced that it acquired the three property Lenox Village multifamily portfolio that includes a total of 474 units and approximately 47,600 square feet of retail and office space for an aggregate purchase price of approximately $77.6 million, exclusive of acquisition-related and financing-related transaction costs.
"We are delighted about this opportunity to expand our presence in the growing and dynamic Nashville market with these Class A communities," said Leonard A. Silverstein, PAC's President and Chief Operating Officer.
PAC acquired this portfolio through indirect, wholly-owned subsidiaries and financed the acquisition by assuming the first mortgage loan on one of the properties from U.S. Bank National Association, as Trustee for the Registered Holders of Wells Fargo Commercial Mortgage Securities, Inc., Multifamily Mortgage Pass-Through Certificates, Series 2012-K711 and a new first mortgage loan on a second property from Jones Lang LaSalle Multifamily, who intends to assign the new loan to Freddie Mac within 60 days.
The assumed first mortgage loan has an outstanding principal balance of approximately $31.4 million, bears interest at a fixed rate of 3.82% annually, matures in May of 2019 and amortizes based on a 30-year schedule. The new first mortgage loan is for approximately $18.4 million, bears interest at a fixed rate of 4.04% annually, matures in January of 2023 and amortizes based on a 30-year schedule. The third property was acquired without any property level debt.
Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select-targeted markets throughout the United States.