Source: Preferred Apartment Communities
PANAMA CITY, FL - Preferred Apartment Communities announced its acquisition of Parkside at the Beach, a 2019 built 288-unit Class A multifamily community located in Panama City Beach, Florida.
Jeff Sherman, President of Multifamily said, "We identified this acquisition opportunity in late 2019, completed our due diligence, and committed to it with non-refundable earnest money in a pre-COVID environment. Also, in February 2020, we obtained an extremely favorable first mortgage loan from Freddie Mac. The combination of these factors, along with very strong April 2020 rent collections, led us to follow through on our commitment to acquire an asset on attractive terms consistent with our multifamily strategy of acquiring well-performing Class A multifamily communities in the Sunbelt."
Mr. Sherman continued, "Parkside at the Beach is another example of selectively adding to our portfolio. The property is exceptionally well located, fronting highway 98 and less than 2 miles to Pier Park, a 2+ million square foot destination open-air shopping center owned by Simon Property Group with over 250 retail, dining and entertainment options. Parkside also serves as the premier multifamily property in the market with kitchen islands, quartz counters, stainless appliances and resort style amenities."
PAC purchased Parkside at the Beach utilizing a first mortgage loan from Freddie Mac bearing interest at a fixed rate of 2.95% per annum for a 10-year term. The loan is interest only during the first two years and amortizes based on a 30-year schedule. There are no loan guaranties provided by PAC or our operating partnership. John Isakson, Chief Financial Officer of PAC said, "Despite the COVID-19 pandemic, which has rapidly impacted all markets, we were able to close on terms previously agreed to with Freddie Mac. This favorable debt complements this acquisition, providing for enhanced cash flows and projected returns."