{"id":477675,"date":"2021-04-19T06:03:39","date_gmt":"2021-04-19T10:03:39","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/preferred-apartment-communities-inc-continues-simplification-strategy-with-agreement-for-transformational-office-portfolio-sale\/"},"modified":"2021-04-19T06:03:39","modified_gmt":"2021-04-19T10:03:39","slug":"preferred-apartment-communities-inc-continues-simplification-strategy-with-agreement-for-transformational-office-portfolio-sale","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/preferred-apartment-communities-inc-continues-simplification-strategy-with-agreement-for-transformational-office-portfolio-sale\/","title":{"rendered":"Preferred Apartment Communities, Inc. Continues Simplification Strategy with Agreement for Transformational Office Portfolio Sale"},"content":{"rendered":"
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– Increases Company Focus on Class A Suburban Sunbelt Multifamily Strategy<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n ATLANTA<\/span>, April 19, 2021<\/span> \/PRNewswire\/ — Preferred Apartment Communities, Inc. (NYSE: APTS) (“PAC” or the “Company”) today announced that the Company has entered into an agreement to sell a portfolio of seven office properties and one office real estate loan investment to Highwoods Properties, Inc. (NYSE: HIW) for an aggregate purchase price of $717.5 million<\/span>, including the assumption of debt.\u00a0 The transactions are expected to close in the third quarter of 2021 and are subject to customary closing conditions.\u00a0 The transactions have been unanimously approved by the Company’s Board of Directors.\u00a0 Highwoods is posting\u00a0$50 million of earnest money deposits that\u00a0are non-refundable except in limited circumstances. The portfolio was marketed by JLL.<\/p>\n

“We are very pleased to announce this strategic agreement to sell the substantial majority of our office portfolio to Highwoods Properties. This sale will build upon our strategy to simplify our business platform that commenced with the sale of our student housing portfolio in the 2nd half of 2020.\u00a0\u00a0Upon closing, PAC’s real estate portfolio will be further streamlined with an increased primary weighting on our core Class A suburban Sunbelt multifamily business and our complementary 100% grocery-anchored Sunbelt retail investments.\u00a0 As we did with the student housing sale, we intend to utilize the cash proceeds generated from this sale (i) to continue to realign our balance sheet through calls and\/or redemptions of our Series A preferred shares, (ii) to continue growing our core portfolio through acquisitions and real estate loan investments, and (iii) for other corporate purposes.\u00a0 Highwoods has demonstrated their commitment to this significant transaction and their sector experience throughout the process, and both groups worked very well together during the due diligence phase,” stated Joel T. Murphy<\/span>, Preferred Apartment Communities’ President and Chief Executive Officer.\u00a0 <\/p>\n

Mr. Murphy continued, “We will remain focused on maximizing the value of our few remaining office assets through prudent asset management and then effect a complete exit from the office sector through a controlled and well-navigated disposition process over time.\u00a0\u00a0We are grateful to the entire team at PAC for their hard work and commitment throughout this process, and particularly so to the professionals in our office group who assembled and operated this high quality portfolio of assets over these past five years.” <\/p>\n

\n Portfolio<\/b>\n <\/p>\n

The portfolio includes seven properties and one real estate loan investment: <\/p>\n