Preferred Apartment Communities, Inc. (NYSE:APTS) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01 Completion of Acquisition or Disposition of Assets.
indirect, wholly owned subsidiary of Preferred Apartment
Communities Operating Partnership, L.P. (“PAC-OP”) completed the
acquisition of a fee simple interest in a Class A office building
in the Central Perimeter submarket of Atlanta, Georgia (“Three
Ravinia”) from SPUS6 Three Ravinia, LP (“Seller”) for an
aggregate net purchase price of approximately $181.8 million
after certain credits for outstanding tenant improvements,
capital projects and rent abatements, and exclusive of
acquisition- and financing-related transaction costs. Preferred
Apartment Communities, Inc. (the “Company”) is the general
partner of, and, as of September 30, 2016, owner of an
approximate 96% interest in, PAC-OP. Outside of the acquisition
of Three Ravinia, there is no relationship between the Company,
PAC-OP or the Purchaser and Seller.
a new and separate first mortgage loan, secured only by Three
Ravinia, from John Hancock Life Insurance Company (U.S.A.) (“John
Hancock”). The first mortgage loan from John Hancock is for a
maximum aggregate amount of $115.5 million and has a maturity
date of January 1, 2042, a fixed interest rate of 4.46% per
annum, is interest only until February 1, 2022 and thereafter
will amortize over a 30-year term until maturity. In connection
with the financing of the acquisition of Three Ravinia, the
Company paid a loan coordination fee of approximately $1.85
million, or 1.6% of the maximum aggregate amount of the new loan,
to Preferred Apartment Advisors, LLC, the Companys manager.
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(a)
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Financial Statements of Businesses Acquired.
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being prepared. The Company will file the required financial
statements under the cover of Form 8-K/A as soon as practicable
but not later than March 20, 2017, which is the first business
day that is 71 calendar days after the latest date on which this
initial Current Report on Form 8-K is required to be filed.
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(b)
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Pro Forma Financial Information.
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currently being prepared. The Company will file the required pro
forma financial information under the cover of Form 8-K/A as soon
as practicable but not later than March 20, 2017, which is the
first business day that is 71 calendar days after the latest date
on which this initial Current Report on Form 8-K is required to
be filed.
About Preferred Apartment Communities, Inc. (NYSE:APTS)
Preferred Apartment Communities, Inc. is a real estate investment trust (REIT). The Company is formed primarily to acquire and operate multifamily properties in select-targeted markets throughout the United States. It operates through three segments: multifamily communities, retail and real estate related financing. The multifamily communities segment consists of owned residential multifamily communities. It owns approximately 20 multifamily communities with a total of over 6,140 units in over eight states. The retail segment consists of owned grocery-anchored shopping centers. The Company owns over 31 grocery-anchored centers across over seven Sunbelt states. It owns Champions Village, a Randalls-anchored shopping center. The financing segment consists of a portfolio of real estate loans, bridge loans and other financial instruments, which partially finance the development, construction and prestabilization carrying costs of multifamily communities and other real estate assets. Preferred Apartment Communities, Inc. (NYSE:APTS) Recent Trading Information
Preferred Apartment Communities, Inc. (NYSE:APTS) closed its last trading session down -0.12 at 14.40 with 120,689 shares trading hands.
