ATLANTA, July 13, 2017 /PRNewswire/ -- Preferred
Apartment Communities, Inc. (NYSE: APTS) ("PAC" or the "Company")
today announced the refinancing in the second quarter of 2017 of
two Class A multifamily communities: Stone Creek Apartments located
in Houston, Texas and Grandeville
at Avalon Park located in Orlando,
Florida.
PAC refinanced Stone Creek utilizing a non-recourse first
mortgage HUD loan originated by PGIM Real Estate Finance. The
new loan package is approximately $20.6
million, bears interest at a fixed rate of 3.47% per annum,
matures in July of 2052 and amortizes based on a 35-year
schedule.
PAC refinanced Avalon Park utilizing a non-recourse first
mortgage loan from Freddie Mac originated by PGIM Real Estate
Finance. The new loan package is approximately $67.4 million, bears interest at a fixed rate of
3.98% per annum, matures in July of 2024 and amortizes based on a
30-year schedule.
"The refinancing of Stone Creek demonstrates PAC's ability to
create value in our assets and refinance them accretively.
The Stone Creek transaction allows PAC to pull out almost
$3.0 million in additional loan
proceeds while lowering the total borrowing cost by over
1.25%. We can then reinvest the additional proceeds generated
to help provide us with further opportunities to acquire
well-located, newly constructed and high-quality multifamily
communities in our core markets," said John
Isakson, Executive Vice President and Chief Capital Officer
for PAC. Mr. Isakson added, "The refinancing of our loan at
Avalon enables the Company to mitigate its interest rate risk
resulting from our previous floating-rate loan and lock in a stable
and low fixed interest rate."
About Preferred Apartment Communities, Inc.
Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to
acquire and operate multifamily properties in select targeted
markets throughout the United States. As part of our business
strategy, we may enter into forward purchase contracts or purchase
options for to-be-built multifamily communities and we may make
real estate related loans, provide deposit arrangements, or provide
performance assurances, as may be necessary or appropriate, in
connection with the development of multifamily communities and
other properties. As a secondary strategy, we may acquire or
originate senior mortgage loans, subordinate loans or real estate
loans secured by interests in multifamily properties, membership or
partnership interests in multifamily properties and other
multifamily related assets and invest a lesser portion of our
assets in other real estate related investments, including other
income-producing property types, senior mortgage loans, subordinate
loans or real estate loans secured by interests in other
income-producing property types, membership or partnership
interests in other income-producing property types as determined by
our manager as appropriate for us. At March 31, 2017, the Company was the approximate
96.8% owner of Preferred Apartment Communities Operating
Partnership, L.P., the Company's operating partnership.
Preferred Apartment Communities, Inc. has elected to be taxed as a
real estate investment trust under the Internal Revenue Code of
1986, as amended, commencing with its tax year ended December 31, 2011.
Forward-Looking Statements
This press release may contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements may be identified by the use of forward-looking
terminology such as "may", "trend", "will", "expects", "plans",
"estimates", "anticipates", "projects", "intends", "believes",
"goals", "objectives", "outlook" and similar expressions.
Because such statements include risks, uncertainties and
contingencies, actual results may differ materially from the
expectations, intentions, beliefs, plans or predictions of the
future expressed or implied by such forward-looking statements.
These risks, uncertainties and contingencies include, but are not
limited to, those disclosed in PAC's filings with the Securities
and Exchange Commission. PAC undertakes no obligation to update
these forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events, except as may be required by law.
Additional Information
The SEC has declared effective the registration statement
(including prospectus) filed by the Company for each of the
offerings to which this communication may relate. Before you
invest, you should read the final prospectus, and any prospectus
supplements, forming a part of the registration statement and other
documents the Company has filed with the SEC for more complete
information about the Company and the offering to which this
communication may relate. In particular, you should carefully
read the risk factors described in the final prospectus and in any
related prospectus supplement and in the documents incorporated by
reference in the final prospectus and any related prospectus
supplement to which this communication may relate. You may obtain
these documents for free by visiting EDGAR on the SEC website at
www.sec.gov. Alternatively, the Company or its dealer
manager, Preferred Capital Securities, LLC, with respect to PAC's
mShares Redeemable Preferred Stock Offering and Series A Redeemable
Preferred Stock and Warrant Unit Offering, and JonesTrading
Institutional Services LLC, with respect to PAC's ATM Common Stock
Offering, will arrange to send you a prospectus if you request it
by calling Leonard A. Silverstein at
(770) 818-4100, 3284 Northside Parkway NW, Suite 150, Atlanta, Georgia 30327.
The ATM Common Stock Offering prospectus, dated July 18, 2016, including a base prospectus, dated
May 17, 2016, can be accessed through
the following link:
https://www.sec.gov/Archives/edgar/data/1481832/000148183216000152/atmprospectus.htm
The mShares Redeemable Preferred Stock Offering prospectus,
dated January 19, 2017, can be
accessed through the following link:
https://www.sec.gov/Archives/edgar/data/1481832/000148183217000008/a424prospectus-mshares1.htm
The Series A Redeemable Preferred Stock and Warrant Unit
Offering prospectus, dated March 16,
2017, can be accessed through the following link:
https://www.sec.gov/Archives/edgar/data/1481832/000148183217000061/a424prospectus-15bseriesar.htm
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SOURCE Preferred Apartment Communities, Inc.