Preferred Apartment Communities (PAC) has converted a portion of the outstanding principal balance of its real estate loan investment along with an additional equity investment into an approximate 98 percent equity ownership interest in a joint venture that owns a 198-unit, 792-bed student housing community.
“This is a great asset with excellent long-term potential value near a thriving university,” said Paul Cullen, CEO of Preferred Campus Communities. “Since stabilization, the property has operated close to 100 percent occupancy.”
The student housing community is located near Kennesaw State University in the Atlanta MSA and is named Stadium Village.
PAC’s 98 percent equity ownership interest is held 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 for the joint venture.