Preferred Apartment Communities, Inc. announces acquisition of a grocery-anchored shopping center in Irmo, SC
July 31, 2017
Preferred Apartment Communities, Inc. (NYSE: APTS) announced the acquisition on July 26, 2017 of Irmo Station, an approximately 99,384 square foot shopping center located in the Columbia, South Carolina MSA and anchored by a 56,942 square foot Kroger grocery store. Irmo Station is strategically located just one mile off of Interstate Highway 26 (I-26).
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 thrilled to partner again with Kroger on this high sales volume location, and we believe the tenants at Irmo Station will continue to benefit from the surrounding dense three mile population of approximately 42,000 people and the affluent households with incomes of over $82,000.”
Mr. Murphy added, “The acquisition of Irmo Station increases the size of our retail portfolio to 34 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 Nationwide Mutual Insurance Company. The first mortgage loan is approximately $10.65 million, bears interest at fixed rate of 3.94% per annum and matures on July 26, 2030. 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 March 31, 2017, the Company was the approximate 96.8% 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.
