Source: Preferred Apartment Communities / #Apartments #Multifamily
PITTSBURGH, PA - Preferred Apartment Communities announced that it converted a portion of the outstanding principal balance of its real estate loan investment into an approximate 96% equity ownership interest in a joint venture that owns a 272-unit apartment community in Pittsburgh, Pennsylvania named City Vista.
PAC's 96% equity ownership interest is held by one of its indirect, wholly-owned subsidiaries. The developers will retain the remaining equity ownership interest in the joint venture, and PAC will manage the business and operations of City Vista.
"We are excited about City Vista and the Pittsburgh market. This is a great asset with excellent long-term potential value," said Leonard A. Silverstein, PAC's President and Chief Operating Officer.
In connection with the conversion, City Vista was refinanced, utilizing a mortgage loan from Jones Lang LaSalle Multifamily for approximately $36.0 million and has a fixed interest rate of 3.68% per annum with a ten-year term. PAC received proceeds from the refinancing of approximately $6.6 million to pay down the remaining outstanding principal and interest balances of its real estate loan investment.
Jones Lang LaSalle Multifamily intends to assign the loan to Freddie Mac within 60 days.
Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States. As part of its business strategy, it enters into forward purchase contracts or purchase options for to-be-built multifamily communities and makes mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties.