May 4, 2020
Atlanta-based Preferred Apartment Communities, Inc. (PAC) acquired Parkside at the Beach, a 288-unit Class A multifamily community in Panama City Beach, FL. PAC purchased the 2019-built asset utilizing a first mortgage loan from Freddie Mac at a fixed rate of 2.95% per year for a 10-year term. The loan is interest-only during the first two years and amortizes on a 30-year schedule.
PAC’s Jeff Sherman notes they identified the asset in late 2019 and committed to it with non-refundable earnest money in a pre-COVID environment. They secured favorable Freddie Mac financing in February 2020. He says, “The combination of these factors, along with very strong April 2020 rent collections, led us to follow through on our commitment to acquire an asset on attractive terms consistent with our multifamily strategy of acquiring well-performing Class A multifamily communities in the Sunbelt.”
The property fronts Highway 98 and is near Pier Park, Simon Property Group’s more than two-million-square-foot destination open-air shopping center.
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