Atlanta-based Preferred Sells Glenmoore, PA MF for $42.5M
The property achieved an average annualized return of approximately 23% and generated a gain on sale of approximately $12.4 million.
GLENMOORE, PA—Atlanta-based Preferred Apartment Communities has sold Stone Rise, a class A multifamily community built in 2008, and located at 900 Selwyn Place, Glenmoore, PA, about 40 miles west of Philadelphia, PA.
Stone Rise consists of one and two bedroom garden apartment homes, a resort-style pool, 24 hour internet café and fitness center. The property also has a car-care center and a “bark park” for pets.
PAC sold Stone Rise for gross proceeds of approximately $42.5 million, the net proceeds of which will be used for working capital purposes including reducing the outstanding balance under its revolving line of credit facility, acquisitions, real estate loan investments and general corporate purposes.
The property achieved an average annualized return of approximately 23% and generated a gain on sale of approximately $12.4 million. Holliday Fenoglio Fowler marketed the property for PAC. FPA Multifamily purchased the offering free and clear of existing financing.
The HFF team representing the seller included senior managing directors Mark Thomson and Ed Coco, senior director Carl Fiebig and director Fran Coyne.
“The financial results generated from the sale of Stone Rise, a property purchased by PAC in 2011, demonstrates our ability to execute and deliver outstanding returns to our stockholders,” says John A. Isakson, executive vice president and chief financial officer for PAC. “We remain committed to a disciplined strategy of carefully allocating capital to accretive investments, optimizing the operations of our owned assets and, when appropriate, opportunistically divesting certain assets in an effort to produce the best possible returns for our stockholders.”
Updated 10/2/2018, 11:05 p.m.: This story was updated to reflect additional information about the sale and purchase provided by HFF.