Source: Preferred Apartment Communities / #Apartments #Multifamily
ATLANTA, GA - Preferred Apartment Communities announced the acquisition of Galleria 75, an outstanding well-located seven acre site that was recently rezoned to allow mixed-use redevelopment, including up to 600 multifamily units.
The property is strategically located immediately north of the Encore multifamily property development and south of the Cobb Energy Performing Arts Center off Cumberland Boulevard in Cobb County, Georgia.
"The property currently maintains 110,000 square foot office property, which offers a unique combination of in-place yield and future redevelopment potential," said Daniel M. DuPree, the Chief Investment Officer for PAC.
John A. Williams, PAC's Chairman and Chief Executive Officer, added, "Concurrent with our acquisition, we were able to rezone the property to allow mixed-use redevelopment, including up to 600 multifamily units. Because the existing office is stabilized and generating excellent cash flow we have the flexibility to continue to own and operate the property on an "as-is" basis until such time we believe the market will reward us for adding density."
PAC acquired this property through a wholly-owned subsidiary and financed the acquisition by assuming the existing first mortgage loan from RGA Reinsurance Company, with an outstanding principal balance of approximately $5.9 million that has a maturity date of July 1, 2022 and a fixed interest rate of 4.25% per annum. There are no loan guaranties provided by PAC.
Preferred Apartment Communities acquires and operates multifamily properties in select targeted markets throughout the United States.