ATLANTA, Jan. 2, 2014 /PRNewswire/ -- Preferred Apartment Communities, Inc. (NYSE MKT: APTS) ("PAC" or the "Company") today announced its acquisition on December 31, 2013 of a 140-unit multifamily community located in Atlanta, Georgia ("Summit II") adjacent to the Company's 345-unit Summit Crossing community ("Summit I") for a purchase price of approximately $19.9 million. Summit II was completed in 2013 and has a current occupancy of approximately 96.4%. PAC intends to combine Summit II with Summit I and operate the combined properties as "Summit Crossing" and brand it as "a Preferred Apartment Community." PAC acquired Summit II pursuant to the terms of the purchase option that was executed when PAC made a mezzanine loan investment to partially finance the construction of Summit II. In connection with the acquisition, PAC's mezzanine loan was paid in full, including the payment of approximately $605,000 in an accrued exit fee. We expect the expanded Summit Crossing community will be a solid contributor to the continued dynamic growth of the Company.
Upon the acquisition of Summit II, PAC assumed the current $12.4 million senior loan from Atlantic Capital Bank ("ACB"). In connection with this assumption, the ACB loan was increased to $13.0 million, the maturity date was changed to June 2014 and the interest rate was set at a floating rate of 30-day LIBOR plus 2.50%. There are no loan guaranties provided by PAC. PAC currently intends to refinance Summit II with a new loan from Freddie Mac within six months.
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 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.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. As a general matter, forward-looking statements reflect our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. These statements may be identified by the use of forward-looking terminology such as "may", "will", "expects", "plans", "estimates", "anticipates", "projects", "intends", "believes", "outlook" and similar expressions.
The forward-looking statements contained in this press release are based upon our historical performance, current plans, estimates, expectations and other factors we believe are appropriate under the circumstances. The inclusion of this forward-looking information is inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: Our business and investment strategy; our projected operating results; estimates relating to our ability to make distributions to our stockholders in the future; availability of qualified personnel; local and national market conditions and trends in our industry; demand for and lease-up of apartment homes, supply of competitive housing product, and other economic conditions; availability of debt and/or equity financing and availability on favorable terms; changes in our asset values; our ability to maintain our qualification as a REIT for U.S. federal income tax purposes; and economic trends and economic recoveries.
Additional discussions of risks, uncertainties and certain other important information appear in our publicly available filings made and to be made with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2012, which we filed with the SEC on March 15, 2013 and our Quarterly Reports on Form 10-Q which we filed with the SEC on May 15, 2013, August 12, 2013 and November 7, 2013, all under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." All information in this release is as of January 2, 2014. The Company does not undertake a duty to update forward-looking statements, including its projected operating results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company may, in its discretion, provide information in future public announcements regarding its outlook that may be of interest to the investment community.
SOURCE Preferred Apartment Communities, Inc.