Preferred Apartment Communities, Inc. Announces Mezzanine Loan Investment Closing in South Florida
ATLANTA, April 1, 2013 /PRNewswire/ -- Preferred Apartment Communities, Inc. (NYSE MKT: APTS), or the Company, today announced that on March 28, 2013 it closed on a mezzanine loan investment of up to approximately $12.7 million to Lely Apartments, LLC ("Aster Lely"), a Georgia limited liability company, in connection with Aster Lely's plans to construct a 308-unit multifamily community in Naples, Florida, which is part of the South Florida market. In connection with the mezzanine loan, the Company was granted an option to purchase the 308-unit multifamily community between the 37th and 41st months following the closing of the mezzanine loan for a pre-negotiated purchase price of approximately $43.5 million. Axiometrics, one of the leading multifamily research companies in the United States, ranks Naples as the number one apartment market by physical occupancy in the country, as of February 2013. Naples enjoyed a physical occupancy rate of 97.8% as of February 2013, up 0.84% on an annual basis and 3.79% over the last two years. According to Axiometrics, as of February 2013, the national average was 94.1% physical occupancy.
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 business 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 multifamily communities and other properties. As a secondary strategy, we also may acquire or originate 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.