Preferred Apartment Communities, Inc. Announces Mezzanine Loan Investment Closing In Connection With Former Charlotte Coliseum Site Redevelopment
ATLANTA, Sept. 7, 2012 /PRNewswire/ -- Preferred Apartment Communities, Inc. (NYSE MKT: APTS), or the Company, today announced that on September 6, 2012 it closed on a mezzanine loan investment of up to $10.0 million to Oxford City Park Development LLC ("City Park"), a Georgia limited liability company, in connection with City Park's plans to construct a 284-unit multifamily community in Charlotte, North Carolina as part of a master plan to redevelop the former Charlotte Coliseum site. In connection with the mezzanine loan, the Company was granted an option to purchase the 284-unit multifamily community between the 39th and 43rd months following the closing of the mezzanine loan for a pre-negotiated purchase price of approximately $30.9 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.