iCrowdNewswire Dec 30, 2020 1:47 PM ET
Preferred Apartment Communities, Inc. provided a summary of the Company’s recent investment and capital redeployment activities. During the months of November and December 2020, the Company (i) completed the $478.7 million sale of its student housing portfolio, (ii) completed the acquisitions of two multifamily communities in Florida, The Blake, a 2019 built 281-unit Class A multifamily community located in Winter Springs, Florida, a suburban community located northwest of the fast-growing Orlando MSA and The Menlo, a newly constructed 332-unit Class A multifamily community located in Jacksonville, Florida, (iii) was fully repaid with all accrued interest on three previously issued multifamily real estate investment loans, (iv) sold a multifamily community in a now non-core market and (v) completed a call of approximately $208.8 million of its Series A preferred stock.
“Our operational performance across the portfolio has afforded us the opportunity to initiate our efforts to simplify PAC’s investment strategies and realign our balance sheet. With internalization, the sale of student housing and a successful vote to be able to call Series A preferred stock after five years, we are poised to both rebalance our common and preferred stock and lean into our core multifamily investment strategy as we close out 2020. Through the acquisitions of The Blake and The Menlo, we have added two newly built, high quality Class A multifamily properties to our portfolio, which were financed with attractive rates of 2.82% and 2.68%, respectively. We believe these Florida properties are well positioned in their respective suburban Sunbelt submarkets and they have each shown strong operational performance throughout the pandemic,” stated Joel T. Murphy, the Company’s President and Chief Executive Officer.
Mr. Murphy continued, “Additionally, we completed the strategic sale of Avenues at Creekside, located in a non-core market for us (New Braunfels, TX), and were fully repaid on three real estate investment loans, one being our last remaining student housing investment, a loan on a property in Atlanta (Solis Kennesaw II, “The Indy”, a 175-unit student housing community). With the completion of these transactions, we were able to achieve significant gains and have additional capital available for use toward higher growth opportunities. We continue to believe that real estate investment loans are a compelling source of growth for PAC, through which we can generate attractive returns on invested capital while being additive to our pipeline of multifamily acquisitions. We are very pleased with these efforts as we continue to seek to drive strong, consistent stockholder returns and value creation.”
The Company expects to utilize the proceeds from this asset sale and three loan payoffs to fund additional investments in its core Sunbelt multifamily business through acquisitions or real estate investment loans and for other general business purposes, which may include redeeming additional preferred stock.
About Preferred Apartment Communities, Inc.
Preferred Apartment Communities, Inc. is a real estate investment trust engaged primarily in the ownership and operation of Class A multifamily properties, with select investments in grocery anchored shopping centers and Class A office buildings. Preferred Apartment Communities’ investment objective is to generate attractive, stable returns for stockholders by investing in income-producing properties and acquiring or originating real estate loans. As of September 30, 2020, the Company owned or was invested in 125 properties in 15 states, predominantly in the Southeast region of the United States. Learn more at www.pacapts.com.