Source: Preferred Apartment Communities
TAMPA, FL - Preferred Apartment Communities announced its acquisition of Altis Wiregrass Ranch, a newly-constructed 392-unit Class A multifamily community located in Tampa, Florida.
Jeff Sherman, President of Multifamily said, "Despite the current near-term environment, our financial involvement in the development of this property since inception gives us a deep understanding of the positive long-term attributes of this best-in-class community and the growing market area around it.The opportunity to acquire it came through a real estate loan investment that PAC made for the development of the property over two years ago and once again illustrates the imbedded value inherent in these loans." Mr. Sherman added, "This acquisition demonstrates our commitment to our strategy of selectively adding newly constructed Class A multifamily communities to our portfolio, which we believe will translate into sustainable and growing cash flows."
Altis is located in Wiregrass Ranch, a master planned mixed-use community spanning over 5,000 acres with top rated schools, medical facilities including a hospital, destination shopping and dining venues. Mr. Sherman stated, "The continued growth in Wiregrass Ranch abounds; currently a 98,000 SF indoor sports facility and Marriott branded hotel are under construction behind Altis and recently, Raymond James submitted a preliminary site plan to Pasco County for their much anticipated satellite office expansion." Mr. Sherman continued, "In addition to the exciting growth story of Wiregrass Ranch, we were able to secure outstanding project level debt for this property."
PAC purchased Altis all cash, net of the full payment of our loan investment and all accrued interest. PAC executed a rate lock with Nationwide for a first mortgage loan bearing interest at a fixed rate of 2.90% per annum for a 10-year term that amortizes based on a 30-year schedule. PAC expects to close this loan with Nationwide during the second quarter of 2020. There will be no loan guaranties provided by PAC or our operating partnership.