ATLANTA—With the four quarter approaching, we can expect some big moves from big players across the commercial real estate sector. Preferred Apartment Communities just closed one noteworthy multifamily deal.
PAC acquired a slew of multifamily units across four states for $182 million. The four apartment communities total 1,397 doors in the Kansas City, Nashville, Dallas, and Houston areas.
"These four communities are an outstanding addition to our multifamily portfolio," says John A. Williams, chairman and CEO of PAC. “We believe the acquisition of these communities will be accretive to our stockholders in both the short and long term."
PAC acquired the multifamily communities through four new wholly-owned subsidiaries and financed the buys through separate first mortgage acquisition loans from KeyBank. KeyBank plans to assign the loans, which total about $119.9 million, to Freddie Mac within 60 days.
Two of the first mortgage loans, aggregating about $59.6 million. With a have maturity dates of Oct. 1, 2021, the loans have a fixed interest rate of 3.68% per annum, are interest-only for the first three years and then amortize based on a 30-year amortization. The other two first mortgage loans, aggregating about $60.3 million, have maturity dates of Oct. 1, 2019, a fixed interest rate of 3.18% per year, and amortize based on a 30-year amortization.
Will PAC make more buys this year? The executives aren't making any specific announcements, but like what they just bought. Leonard A. Silverstein, PAC's president and COO, says, "This portfolio acquisition enhances PAC's presence in our targeted markets, which we believe creates greater operating efficiencies and economies of scale."
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