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8-K Alert: AIMCO Fund Obtains $3.9M Second Mortgages on Two Atlanta Apartment Complexes
The following is culled from an 8-K Filing filed with the SEC:
Century Properties Fund XIX, LP, a Delaware limited partnership (the "Registrant"), owns a 100% interest in Lakeside at Vinings, LLC, a Delaware limited liability company (the "Lakeside Company"), which owns Lakeside at Vinings Mountain ("Lakeside"), a 220-unit apartment complex located in Atlanta, Georgia.
On November 4, 2009, the Lakeside Company obtained a second mortgage loan in the principal amount of $3,900,000 on Lakeside. The second mortgage loan bears interest at a fixed rate of 5.57% per annum, and requires monthly payments of principal and interest of approximately $22,000 beginning January 1, 2010 through the July 1, 2013 maturity date. If no event of default exists at maturity, the maturity date will automatically be extended for one additional year, to July 1, 2014, during which period the mortgage would bear interest at the one-month LIBOR Index plus 350 basis points, and would require monthly payments of principal and interest. The Lakeside Company may prepay the second mortgage at any time with 30 days written notice to the lender subject to a prepayment penalty.
The Registrant also owns a 100% interest in Peak at Vinings, LLC, a Delaware limited liability company (the "Peak Company"), which owns The Peak at Vinings Mountain ("The Peak"), a 280-unit apartment complex located in Atlanta, Georgia. On November 4, 2009, the Peak Company obtained a second mortgage loan in the principal amount of $3,900,000 on The Peak. The second mortgage loan bears interest at a fixed interest rate of 5.56% per annum, and requires monthly payments of principal and interest of approximately $22,000 beginning January 1, 2010 through the July 1, 2013 maturity date. If no event of default exists at maturity, the maturity date will automatically be extended for one additional year, to July 1, 2014, during which period the mortgage would bear interest at the one-month LIBOR Index plus 350 basis points, and would require monthly payments of principal and interest. The Peak Company may prepay the second mortgage at any time with 30 days written notice to the lender subject to a prepayment penalty.
In accordance with the terms of both loan agreements, payment of the loans may be accelerated at the option of the lender if an event of default, as defined in the applicable loan agreements, occurs. Events of default include nonpayment of monthly principal and interest by the due date; nonpayment of the matured balance of the loan on the maturity date; and the occurrence of any breach or default in the performance of any of the covenants or agreements made by the Registrant.
In accordance with the Amended and Restated Limited Partnership Agreement of the Registrant, the Registrant's managing general partner has evaluated the cash requirements of the Registrant and determined that the net financing proceeds will be used to repay outstanding loans and payables due to an affiliate of the Registrant's managing general partner.