WACO, TX - Preferred Apartment Communities announced that it converted a portion of the outstanding principal and accrued interest balances of its real estate loan investment along with an additional equity investment to add a 250-unit, 840-bed student housing community to an existing joint venture.
Completed in 2016, this student housing community is located less than a mile from Baylor University in Waco, Texas and is named Preferred Campus Communities Waco, formerly called Haven South. The joint venture also owns Stadium Village, a 198-unit, 792-bed student housing community located near Kennesaw State University in the Atlanta, Georgia MSA. PAC owns a 99.0% equity ownership interest in the joint venture through its indirect, wholly-owned subsidiary Preferred Campus Communities.
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 at Preferred Campus Communities Waco.
"We are pleased to add Preferred Campus Communities Waco to our growing student housing portfolio," said Paul Cullen, Chief Executive Officer of Preferred Campus Communities. Mr. Cullen added, "We are excited about Preferred Campus Communities Waco and its best in class student-centered amenities, which includes a stand-alone 2,000 square foot fitness center, a large resort-style swimming pool and a modern clubhouse, featuring a computer lab and movie theater.”
In connection with the conversion, Preferred Campus Communities Waco was refinanced, utilizing a non-recourse first mortgage loan from Prudential Insurance Company of America. The first mortgage loan is approximately $31.4 million, and bears interest at a floating interest rate of 300 bps above the 30-day LIBOR, and has a two-year term, with full-term interest only payments. There are no loan guaranties provided by PAC or our operating partnership.