Boston, MA 09/30/2014 (wallstreetpr) – Preferred Apartment Communities Inc. (NYSEMKT:APTS), which was formed to buy and operate multifamily properties in selected markets in the U.S., disclosed that it has purchased four multifamily communities in Kansas City, Nashville, Tennessee, Texas, Houston and Dallas areas.
Aggregate Units
According to a statement issued by Preferred Apartment Communities Inc. (NYSEMKT:APTS), the four communities have aggregate units of 1,397 in different areas and States. These properties were purchased for approximately $182 million, which was exclusive of financing and acquisition-related transaction expenses.
Preferred Apartments has purchased these communities through its new fully-owned four subsidiaries. The funding of the acquisition was done with the financing of separate first mortgage loans for every property. KeyBank National Association has lent finance to Preferred Apartment Communities Inc. (NYSEMKT:APTS) as the financial institution plans to designate the loans to Freddie Mac before 60 days for an amount of about $119.9 million besides available funds.
Mortgage Loans
Preferred Apartment Communities Inc. (NYSEMKT:APTS) disclosed that two loans of the first mortgage for about $59.6 million would be maturing on October 1, 2021. These loans carried a fixed interest of 3.68% per annum for the first three years only. Thereafter, the company indicated that the interest would be based on a 30-year amortization rate.
Similarly, the other two loans of first mortgage aggregating about $60.3 million would mature on October 1, 2019. These loans would carry a fixed interest of 3.18% a year and thereafter based on a 30-year amortization rate.
Management Comments
Preferred Apartments Chairman and CEO, John Williams, said that these four communities were an excellent addition to its portfolio of multifamily. He said that the company believes that the acquisition would be accretive to its shareholders in both the short, as well as, long-term.
Preferred Apartment Communities Inc. (NYSEMKT:APTS)’s President and Chief Operating Officer, Leonard Silverstein, too echoed similar feelings when he said that the acquisition of the portfolio would improve its presence in its targeted markets since it would create higher economies of scale and operating efficiencies.
