June 29, 2018
Preferred Campus Communities LLC, a wholly-owned subsidiary of Preferred Apartment Communities, acquired The Bloc, a newly-constructed, 556-bed student housing property serving Texas Tech University in Lubbock, TX. PCC, which was formed to acquire off-campus student housing assets, made the deal with the unknown seller/developer for the 140-unit property at 707 Avenue T.
The buyer financed the buy with a $29 million, non-recourse, first-mortgage bridge loan from TH Commercial Mortgage LLC, managed by Pine River Capital. The loan bears interest at a floating rate of 355 basis points over LIBOR, with a three-year, interest-only term.
The purchase increases PCC’s portfolio to seven student housing properties in four states.
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