Preferred Apartment Communities, Inc. Announces Acquisition of a Grocery-Anchored Shopping Center

ATLANTA, Oct. 18, 2016

Champions Village is the final closing to complete the acquisition of a portfolio of eight grocery anchored centers purchased from Hines.  The other seven centers closed on August 9, 2016 and are strategically located throughout our target markets in Florida, Georgia, North Carolina, and Texas.

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, "This purchase of Champions Village completes the closing on the entire Hines retail portfolio. We believe the tenants of Champions Village with their strong historical sales performance will continue to benefit from the surrounding dense three mile population of over 100,000 people and the affluent households with average incomes over $90,000. There is tremendous opportunity here to further enhance the shopping experience at Champions Village and we are eager to hit the ground running."

"The acquisition of Champions Village increases the size of our retail portfolio to 31 grocery anchored centers across seven Sunbelt states, consistent with our strategy to acquire well-positioned grocery anchored centers in suburban Sunbelt markets with strong demographics," he added.   

The Company financed the acquisition with a non-recourse five-year floating rate loan at 3% over the 30 Day LIBOR Rate from Metropolitan Life Insurance Company.  There are no loan guaranties provided by PAC.

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 mezzanine debt secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily related assets and invest not more than 20% of our assets, subject to any temporary increase unanimously approved by our board of directors, in other real estate related investments such as grocery-anchored shopping centers, senior mortgage loans, subordinate loans or mezzanine debt secured by interests in grocery-anchored shopping centers, membership or partnership interests in grocery-anchored shopping centers and other grocery-anchored shopping center related assets as determined by our manager as appropriate for us.  At June 30, 2016, the Company was the approximate 96.4% 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.