Preferred Apartment Communities Picks Up 364-Unit Nashville Apartment Asset and Two Shopping Centers
- Aug 06, 2014
By Eliza Theiss, Associate Editor
Preferred Apartment Communities’ (PAC) operating partnership Preferred Apartment Communities Operating Partnership, L.P. (PAC-OP) has signed purchase and sale agreements of $181.7 million with four entities for the purchase of four apartment communities totaling 1,397 units.
Among the deals is an agreement with Stoneridge Nashville, LLC for the purchase of a 364-unit multifamily community on 30.5 acres in Nashville, identified by the Nashville Post as Stoneridge Farms. Located west of downtown Gallatin, the community (also known as Stoneridge Farms at the Hunt Club) features one-, two- and three-bedroom apartments of 816 to 1,387 square feet. Rents start at a monthly $805 and go up to $1,299.00. Community amenities include a swimming pool, spa, fitness center, infrared sauna, tanning capsules, tennis courts, sand volleyball court, two playgrounds, outdoor fireplace, gourmet outdoor kitchen, cyber café, club, media center, resident library, car care station and 30 acres of landscaped grounds.
PAC also agreed to purchase a fee simple interest in a 326-unit, 29.3-acre apartment community in Kansas City from Sandstone Overland Park, LLC, a fee simple interest in a 300-unit, 15-acre multifamily development in Dallas from Estancia Dallas, LLC and a fee simple interest in a 369-unit multifamily community located on 31.5 acres in Houston from Vineyards Houston, LLC. The $181.7 million purchase price is exclusive of acquisition- and financing-related costs. PAC is in talks with Freddie Mac for a non-recourse first mortgage loan on each community for an estimated total of 118 million on all four properties. PAC expects the loans to mature in five to seven years and bear a fixed rate of 1.4 percent over the interest on the five- to seven-year United States Treasury security.
PAC also announced that PAC-OP and some of its wholly owned subsidiaries entered agreements to acquire nine grocery-anchored necessity retail shopping centers for a total purchase price of $152.2 million, exclusive of acquisition- and financing-related transaction costs. The nine assets represent two portfolios. One consists of two, yet to be identified, Publix-anchored shopping centers in Nashville, totaling 127,157 square feet.
The second portfolio comprises seven properties totaling 513,723 square feet. Five of the centers, located in Atlanta and Columbus, Georgia, and Miami, Orlando and Tampa, Florida are Publix- anchored, while two assets, located in Houston and Charleston, are anchored by Kroger and Bi-Lo. According to the Atlanta Journal-Constitution, PAC intends to spin off the retail centers into a new real estate investment trust, dubbed New Market Properties, which will eventually be taken public.
Image courtesy of Stoneridge Farms