ATLANTA, Jan. 9, 2018 /PRNewswire/ -- Preferred
Apartment Communities, Inc. (NYSE: APTS) ("PAC" or the "Company")
today announced the acquisition of Lux, a 265-unit Class A
multifamily community in Jacksonville,
Florida constructed in 2017. Lux is located adjacent
to Sorrel, a Class A multifamily community that PAC acquired in
2016. "This acquisition creates operational efficiencies
across the two properties and grows our market presence in the
highly desirable Intracoastal West area of Jacksonville to over 550 units," said
John A. Williams, the Company's
Chief Executive Officer. Mr. Williams added, "The acquisition
of Lux demonstrates our commitment to our strategy of adding newly
constructed Class A multifamily communities to our portfolio, which
we believe will translate into sustainable and growing cash
flows."
Jeff Sherman, Executive Vice
President of Multifamily Investments stated, "The acquisition of
Lux is a great start to 2018 after a highly successful 2017 in
which PAC acquired 13 Class A multifamily and student housing
communities totaling over 3,200 units and originated five real
estate investment loans for the development of Class A multifamily
and student housing communities totaling over 1,400 units."
Mr. Sherman added, "Our multifamily and student housing acquisition
pipeline under our real estate loan investment program, which
typically gives PAC the option to acquire Class A multifamily and
student housing communities at pre-negotiated discounts, now
aggregates 19 Class A multifamily and student housing communities
representing over 5,000 units."
PAC acquired this community through a wholly-owned subsidiary
and financed the acquisition utilizing a non-recourse first
mortgage loan from Nationwide Life Insurance Company. The
principal balance on the first mortgage loan is approximately
$31.5 million, bears interest at a
fixed rate of 3.91% per annum, has a 12-year term and amortizes
based on a 30-year schedule. There are no loan guaranties
provided by PAC or our operating partnership.
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 September 30, 2017, the Company was the
approximate 97.5% 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.
Learn more at www.pacapts.com.
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 supplement, dated
July 10, 2017, including a base
prospectus, dated May 17, 2016, can
be accessed through the following link:
https://www.sec.gov/Archives/edgar/data/1481832/000148183217000110/atmprospectusspring2017.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.