Preferred Apartment Communities, Inc. Announces Mezzanine Loan Investment Closing
ATLANTA, Sept. 5, 2012 /PRNewswire/ -- Preferred Apartment Communities, Inc. (NYSE MKT: APTS), or the Company, today announced that on August 31, 2012 it closed on a mezzanine loan investment of up to approximately $12.2 million to Oxford City Vista Apartments LLC ("City Vista"), a Georgia limited liability company, in connection with City Vista's plans to construct a 272-unit multifamily community in Pittsburgh, Pennsylvania. In connection with the mezzanine loan, the Company was granted an option to purchase the 272-unit apartment community between the 42nd and 45th months following the closing of the mezzanine loan for a pre-negotiated purchase price of approximately $43.6 million.
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 part of our property acquisition strategy, we may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and we may make mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the construction of these properties. As a secondary strategy, we also may acquire 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.
SOURCE Preferred Apartment Communities, Inc.