ALEXANDRIA, VA–Preferred Apartment Communities has originated a $30.1 million loan for a 302-unit apartment project here, with an option to purchase the property, once it is stabilized, at a discounted price to market.
The property is located near the blue line station near the master-planned community Cameron Station.
This strategy of investing in a new project is part of the REIT's MO: it will enter into forward purchase contracts or purchase options for to-be-built multifamily communities. It also makes real estate related loans, or acquires or originates senior mortgage loans, subordinate loans or real estate loans secured by multifamily properties
“We continue to originate real estate loan investments that provide both attractive current returns and the opportunity to acquire new multifamily communities at a discount to stabilized value,” said CEO John A. Williams, in a prepared statement.
Other recent transactions by the REIT include the sale of Lake Cameron, multifamily community in Raleigh, NC, that traded for gross proceeds of $43.4 million and the acquisition of an apartment in the Atlanta area that was constructed in 2016 and is called Green Park. Like the apartment in Alexandria, the Green Park acquisition came through a real estate loan investment that the REIT made over three years ago, the proceeds of which were used to partially fund the development of the 310-unit project.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
