Source: Preferred Apartment Communities / #Apartments #Multifamily
ATLANTA, GA - Preferred Apartment Communities announced it converted a portion of the outstanding principal balance of its real estate loan investment along with an additional equity investment into an approximate 98.0% equity ownership interest in a joint venture that owns a 198-unit, 792-bed student housing community.
This student housing community is located near Kennesaw State University in the Atlanta, Georgia MSA and is named Stadium Village. PAC's 98.0% equity ownership interest is held through its indirect, wholly-owned subsidiary Preferred Campus Communities, LLC.
The developers will maintain an equity ownership interest in the joint venture, and Preferred Campus Management, a dedicated manager of student housing communities and a wholly-owned subsidiary of Preferred Apartment Advisors, the Company's external manager, will manage the business and operations for the joint venture.
"We are excited about Stadium Village and its attractive student-centered amenities. This is a great asset with excellent long-term potential value near a thriving university," said Paul Cullen, Chief Executive Officer of Preferred Campus Communities, LLC. Mr. Cullen added, "Since stabilization, the property has operated close to 100% occupancy."
In connection with the conversion, Stadium Village was refinanced, utilizing a non-recourse first mortgage loan from Prudential Affordable Mortgage Company. The first mortgage loan is approximately $47.0 million, bears interest at a fixed interest rate of 3.80% per annum, has a seven-year term and amortizes based on a 30-year schedule. There are no loan guaranties provided by PAC or our operating partnership.