WACO, TX – Preferred Apartment Communities announced that it converted a part of the outstanding principal and accrued interest balances of its real estate loan investment along with an additional equity investment to add a 250-unit, 840-bed student housing community to an existing joint venture. 

Completed in 2016, this student housing community is located less than a mile from Baylor University in Waco, Texas and is named Preferred Campus Communities Waco, formerly called Haven South.  The joint venture also owns Stadium Village, a 198-unit, 792-bed student housing community located near Kennesaw State University in the Atlanta, Georgia MSA.  PAC owns a 99.0% equity ownership interest in the joint venture through its indirect, wholly-owned subsidiary Preferred Campus Communities. 

The developers will maintain an equity ownership interest in the joint venture, and Preferred Campus Management, a dedicated manager of student housing communities and a wholly-owned subsidiary of Preferred Apartment Advisors, the Company’s external manager, will manage the business and operations at Preferred Campus Communities Waco.  

“We are pleased to add Preferred Campus Communities Waco to our growing student housing portfolio,” said Paul Cullen, Chief Executive Officer of Preferred Campus Communities.  Mr. Cullen added, “We are excited about Preferred Campus Communities Waco and its best in class student-centered amenities, which includes a stand-alone 2,000 square foot fitness center, a large resort-style swimming pool and a modern clubhouse, featuring a computer lab and movie theater.”

In connection with the conversion, Preferred Campus Communities Waco was refinanced, utilizing a non-recourse first mortgage loan from Prudential Insurance Company of America.  The first mortgage loan is approximately $31.4 million, and bears interest at a floating interest rate of 300 bps above the 30-day LIBOR, and has a two-year term, with full-term interest only payments. There are no loan guaranties provided by PAC or our operating partnership.

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SEATTLE, WA – MG Properties Group, a private San Diego-based real estate investor and operator, announced the acquisition of Beaumont Apartments in Woodinville, WA and Newberry Square Apartments in Lynnwood, WA.  The two separate acquisitions total 467 units and approximately $132.8 million in buy price.

Beaumont Apartments: Built in 2009, the 344-unit class “A” apartment community is located within 20 miles of over 700,000 jobs in Bellevue, Redmond, & downtown Seattle.  The sellers were represented by Jeff Williams and Tim Brown at Moran & Company. MGPG bought the property subject to the assumption of $49,250,000 of fixed-rate debt and obtained a $10.4MFannie Mae fixed-rate supplemental loan arranged by Nathan Prouty at NorthMarq Capital.

Newberry Square Apartments: Built in 2005, the 123-unit class “A” apartment community is located in the thriving Lynnwood submarket between Everett and Seattle.  The seller was represented by Kenny Dudunakis, David Sorensen, and Ben Johnson at Berkadia. The acquisition was financed with a $21,887,000 Fannie Mae Loan arranged by Bryan Frazier of Walker & Dunlop.

MGPG plans to perform strategic interior and exterior renovations to the properties. According to Mark Gleiberman, MGPG’s Chief Executive Officer, “The locations and profiles of these properties make them brilliant long-term strategic buys for MGPG. Through our value-add strategy, we expect the properties to remain competitive in the marketplace and generate stable cash flow for our private investment capital.”

MG Properties Group has bought 11 properties in the past 12 months.  These acquisitions total over $817,000,000 in buy price and 4,000 units.  The company is targeting further acquisitions in Washington, Oregon, Arizona, California, Colorado, and Nevada.

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