Preferred Apartment Communities, Inc. Announces Acquisition of a 312-Unit Multifamily Community in Birmingham, Alabama

ATLANTA, March 27, 2017

PAC financed the acquisition using its newly closed Revolving Credit Facility with Freddie Mac and KeyBank (the "Facility").  The Facility provides for aggregate borrowings of up to $200 million, subject to increasing the Facility to $300 million in KeyBank's sole discretion.  The Facility has a five-year term and a floating interest rate that is dependent on both the type of property financed under the Facility and the amount of leverage utilized.  In addition, there will be no loan guaranties provided by PAC or its operating partnership and no property mortgages originated under the Facility will be cross-collateralized.  For the acquisition of Retreat at Greystone, PAC borrowed $35.2 million on the Facility at a floating interest rate 185 basis points above 30-day LIBOR.  PAC intends to refinance its loan on the property and has submitted its loan application and locked the interest rate with KeyBank to provide a seven-year term, non-recourse first mortgage loan at a fixed rate of 4.31% per annum.

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 December 31, 2016, the Company was the approximate 96.8% owner of Preferred Apartment Communities Operating Partnership, L.P., or the 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.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of forward-looking terminology such as "may", "trend", "will", "expects", "plans", "estimates", "anticipates", "projects", "intends", "believes", "goals", "objectives", "outlook" and similar expressions.  Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, those disclosed in PAC's filings with the Securities and Exchange Commission. PAC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.