Preferred Apartment Communities, Inc. Announces Acquisition
ATLANTA, June 25, 2013
ATLANTA, June 25, 2013 /PRNewswire/ -- Preferred Apartment Communities, Inc.
(NYSE MKT: APTS) ("PAC" or the "Company") today announced its acquisition of a
96-unit townhome community located in Hampton, Virginia ("Trail II") adjacent
to the Company's 204-unit Trail Creek community ("Trail I") for a purchase
price of approximately $18.1 million. Trail II was completed in 2012 and has
a current occupancy of approximately 94%. PAC intends to combine Trail II
with Trail I and operate the combined properties as "Trail Creek" and brand it
as "a Preferred Apartment Community."PAC acquired Trail II pursuant to the
terms of the purchase option that was executed when PAC made a mezzanine loan
investment to partially finance the construction of Trail II. In connection
with the acquisition, PAC's mezzanine loan was paid in full, including the
payment of approximately $283,000 in an accrued exit fee. We expect the
expanded Trail Creek community will be a solid contributor to the continued
dynamic growth of the Company.
Upon the acquisition of Trail II, PAC refinanced Trail I with a combined loan
of approximately $28.1 million on the combined Trail Creek community
originated by KeyCorp Real Estate Capital Markets, Inc., and expects the loan
to be transferred to Freddie Mac within 60 days. The new financing is
non-recourse, interest only at a fixed interest rate of 4.22% per annum, and
matures in June 2020. There are no loan guaranties provided by PAC. The new
loan replaces floating rate debt currently used to finance Trail I.
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 a secondary strategy, we also may acquire or originate senior mortgage
loans, subordinate loans or mezzanine debt secured by interests in multifamily
properties, membership or partnership interests in multifamily properties and
other multifamily related assets and invest not more than 10% of our total
assets in other real estate related investments, as determined by our manager
as appropriate for us. 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.
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. As a general matter, forward-looking statements reflect
our current expectations and projections relating to our financial condition,
results of operations, plans, objectives, future performance and business.
These statements may be identified by the use of forward-looking terminology
such as "may", "will", "expects", "plans", "estimates", "anticipates",
"projects", "intends", "believes", "outlook" and similar expressions.
The forward-looking statements contained in this press release are based upon
our historical performance, current plans, estimates, expectations and other
factors we believe are appropriate under the circumstances. The inclusion of
this forward-looking information is inherently subject to risks and
uncertainties, many of which cannot be predicted with accuracy and some of
which might not even be anticipated. Future events and actual results,
financial and otherwise, may differ materially from the results discussed in
the forward-looking statements. Statements regarding the following subjects,
among others, may be forward-looking: Our business and investment strategy;
our projected operating results; estimates relating to our ability to make
distributions to our stockholders in the future; availability of qualified
personnel; local and national market conditions and trends in our industry;
demand for and lease-up of apartment homes, supply of competitive housing
product, and other economic conditions; availability of debt and/or equity
financing and availability on favorable terms; changes in our asset values;
our ability to maintain our qualification as a REIT for U.S. federal income
tax purposes; and economic trends and economic recoveries.
Additional discussions of risks, uncertainties and certain other important
information appear in our publicly available filings made and to be made with
the SEC, including our Annual Report on Form 10-K for the year ended December
31, 2012, which we filed with the SEC on March 15, 2013 and our Quarterly
Report on Form 10-Q filed with the SEC on May 15, 2013, all under the headings
"Risk Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations." All information in this release is as
of June 25, 2013. The Company does not undertake a duty to update
forward-looking statements, including its projected operating results.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. The
Company may, in its discretion, provide information in future public
announcements regarding its outlook that may be of interest to the investment
SOURCE Preferred Apartment Communities, Inc.
Contact: Leonard A. Silverstein, President and Chief Operating Officer,
Preferred Apartment Communities, Inc., 770-818-4147, email@example.com
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