Preferred Apartment Communities, Inc. (NYSE: APTS) announced the acquisition on August 25, 2017 of Maynard Crossing, an approximately 122,781 square foot shopping center located in the affluent Raleigh submarket of Cary, North Carolina and anchored by a 55,973 square foot Kroger grocery store. Maynard Crossing is strategically located at the corner of Maynard and High House Road, a major intersection with over 43,000 cars per day.
PAC acquired this asset through its wholly-owned subsidiary New Market Properties, LLC. Joel T. Murphy, President and Chief Executive Officer of New Market said about the acquisition, "We are pleased to further expand into North Carolina, with the Raleigh MSA being the 11th fastest growing in the US and we believe the tenants at Maynard Crossing will continue to benefit from the surrounding dense three mile population of approximately 90,000 people with household incomes of over $107,000." Mr. Murphy added, "The acquisition of Maynard Crossing increases the size of our retail portfolio to 35 grocery-anchored shopping centers across seven Sunbelt states, consistent with our strategy to acquire well-positioned grocery-anchored shopping centers in suburban Sunbelt markets with strong demographics."
The Company financed the acquisition utilizing a non-recourse first mortgage loan from Principal Financial Group. The first mortgage loan is approximately $18.5 million, bears interest at fixed rate of 3.74% per annum and matures on September 1, 2032. There are no loan guaranties provided by PAC or its operating partnership.
About New Market Properties, LLC
New Market Properties, LLC is a wholly-owned indirect subsidiary of Preferred Apartment Communities, Inc. and is focused on the grocery anchored shopping center sector. New Market currently owns and operates a portfolio of grocery anchored shopping centers in seven Sunbelt states. Its strategy is to aggressively grow its existing portfolio throughout the Mid-Atlantic, Southeast and Texas. New Market targets high quality suburban markets with dominant grocers such as Publix, Kroger, Harris Teeter, Tom Thumb and HEB.
About Preferred Apartment Communities, Inc.
Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States. As part of our business strategy, we may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and we may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. As a secondary strategy, we may acquire or originate senior mortgage loans, subordinate loans or real estate loans secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily related assets and invest a lesser portion of our assets in other real estate related investments, including other income-producing property types, senior mortgage loans, subordinate loans or real estate loans secured by interests in other income-producing property types, membership or partnership interests in other income-producing property types as determined by our manager as appropriate for us. At June 30, 2017, the Company was the approximate 97.3% owner of Preferred Apartment Communities Operating Partnership, L.P., the Company's operating partnership. Preferred Apartment Communities, Inc. has elected to be taxed as a real estate investment trust under the Internal Revenue Code of 1986, as amended, commencing with its tax year ended December 31, 2011. Learn more at www.pacapts.com.