Preferred Apartment Communities, Inc. (NYSE: APTS) announced the acquisition on September 22, 2017 of West Town Market, an approximately 67,883 square foot shopping center located in Fort Mill, South Carolina, an affluent submarket within the Charlotte, North Carolina MSA and anchored by a 48,220 square foot Harris Teeter grocery store. West Town Market is strategically located on the highly-travelled Highway 160 corridor just west of I-77, the main thoroughfare into downtown Charlotte.
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 make our market entry into the Charlotte, North Carolina MSA with a market dominant grocer like Harris Teeter." Mr. Murphy added, "The acquisition of West Town Market increases the size of our retail portfolio to 37 grocery-anchored shopping centers across seven Sunbelt states, consistent with our strategy to acquire well-positioned and highly accretive grocery-anchored shopping centers in suburban Sunbelt markets with strong demographics."
The Company financed the acquisition utilizing a non-recourse first mortgage loan from Nationwide Life Insurance Company. The first mortgage loan is approximately $9.0 million, bears interest at fixed rate of 3.64% per annum and matures on October 1, 2025. 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.