TEMPE, AZ – Preferred Apartment Communities announced the acquisition of a 225-unit, 640-bed student housing community located near Arizona State University in Tempe, Arizona.
PAC acquired this asset through its wholly-owned subsidiary Preferred Campus Communities.
“We believe this property is a premier, well located student housing asset, providing residents with immediate access to the Arizona State campus. We feel the modern features, including a computer lab, two interior court yards, a 24-hour fitness center, and other student-centered amenities are extremely attractive to the resident base,” said Paul Cullen, PAC’s Chief Marketing Officer and Chief Executive Officer of PCC.
PCC financed the acquisition using its newly closed Revolving Credit Facility with Freddie Mac and KeyBank. The Facility provides for aggregate borrowings of up to a maximum amount of $200 million, subject to increase to $300 million in KeyBank’s sole discretion, has a five year term, and a floating interest rate that is dependent on the type of property in the Facility and the leverage level of each individual asset.
For this acquisition, PAC borrowed $37.5 million on the Facility at a floating interest rate 220 basis points above 30-day LIBOR for a term of five years. There are no loan guaranties provided by PAC and no properties acquired under the Facility will be cross-collateralized.
Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.