Preferred Apartment Communities, Inc. Announces Real Estate Loan Investment in Orlando, Florida Multifamily Development

Rhea-AI Summary

Preferred Apartment Communities, Inc. (NYSE: APTS) announced the closing of a real estate loan investment of up to $16.8 million on March 1, 2021. This investment is linked to the development of a 320-unit Class A multifamily community in Orlando, Florida, part of a larger mixed-use development. PAC has secured an option to purchase the community once it stabilizes. The president of multifamily, Jeff Sherman, highlighted the potential for solid returns and a strong lending relationship with Crosland Southeast.

Positive

• Investment of up to $16.8 million in a Class A multifamily community.
• Potential for solid returns from real estate loan investments.
• Option to purchase the multifamily community post-stabilization.

Negative

• None.

ATLANTA, March 4, 2021 /PRNewswire/ -- Preferred Apartment Communities, Inc. (NYSE: APTS) ("PAC" or the "Company") today announced that on March 1, 2021 it closed on a real estate loan investment of up to approximately $16.8 million in connection with Crosland Southeast's plans to develop a 320-unit Class A multifamily community located in Orlando, Florida.  The property is part of Metro West, an 1,800-acre mixed-use development currently comprising over 2.5 million SF of office and retail, Valencia College's West Campus, and MetroWest Golf Club.  Additionally, with this investment, PAC received an option to purchase the multifamily community following stabilization.  "We continue to originate real estate loan investments as they provide the Company with solid returns and a potential pipeline of modern and new Class A multifamily communities," said Jeff Sherman, the Company's President of Multifamily.  Mr. Sherman added, "We look forward to beginning our lending relationship with Crosland Southeast, a premier real estate development firm focused on multifamily development opportunities within many of our target markets."

About Preferred Apartment Communities, Inc.

Preferred Apartment Communities, Inc. (NYSE: APTS) is a real estate investment trust engaged primarily in the ownership and operation of Class A multifamily properties, with select investments in grocery anchored shopping centers and Class A office buildings. Preferred Apartment Communities' investment objective is to generate attractive, stable returns for stockholders by investing in income-producing properties and acquiring or originating real estate loans. As of December 31, 2020, we owned or were invested in 116 properties in 13 states, predominantly in the Southeast region of the United States. Learn more at www.pacapts.com.

Forward-Looking Statements

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. These statements may be identified by the use of forward-looking terminology such as "may", "trend", "will", "expects", "plans", "estimates", "anticipates", "projects", "intends", "believes", "goals", "objectives", "outlook" and similar expressions.  Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, (a) the impact of the coronavirus (COVID-19) pandemic on PAC's business operations and the economic conditions in the markets in which PAC operates; (b) PAC's ability to mitigate the impacts arising from COVID-19 and (c) those disclosed in PAC's filings with the Securities and Exchange Commission. PAC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

Additional Information

The SEC has declared effective the registration statement (including prospectus) filed by the Company for each of the offerings to which this communication may relate.  Before you invest, you should read the final prospectus, and any prospectus supplements, forming a part of the registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the offering to which this communication may relate.  In particular, you should carefully read the risk factors described in the final prospectus and in any related prospectus supplement and in the documents incorporated by reference in the final prospectus and any related prospectus supplement to which this communication may relate. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov.  Alternatively, the Company or its dealer manager, Preferred Capital Securities, LLC, with respect to its Series A1/M1 Redeemable Preferred Stock Offering, will arrange to send you a prospectus if you request it by calling John A. Isakson at (770) 818-4109, 3284 Northside Parkway NW, Suite 150, Atlanta, Georgia 30327.

The Series A1/M1 Redeemable Preferred Stock Offering prospectus, dated October 22, 2019, can be accessed through the following link:

https://www.sec.gov/Archives/edgar/data/1481832/000148183219000097/a424b5-2019seriesamshares.htm

View original content:http://www.prnewswire.com/news-releases/preferred-apartment-communities-inc-announces-real-estate-loan-investment-in-orlando-florida-multifamily-development-301241044.html

SOURCE Preferred Apartment Communities, Inc.

FAQ

What is the recent investment announcement from Preferred Apartment Communities (APTS)?

On March 1, 2021, Preferred Apartment Communities announced a real estate loan investment of up to $16.8 million for a multifamily community development in Orlando, Florida.

How many units will the new multifamily community have in Orlando?

The new multifamily community will have 320 units.

What are the benefits of the recent loan investment for APTS?

The loan investment provides potential solid returns and a future option to purchase the community once stabilized.

Who is developing the multifamily community in Orlando for APTS?

Crosland Southeast is the developer of the multifamily community.

When was the real estate loan investment for the Orlando community closed?

The loan investment was closed on March 1, 2021.