Preferred Apartment Communities Inc. (NYSE: APTS), a publicly traded real estate investment trust and sponsor of alternative investments, has sold two Atlanta office properties, Armour Yards and 251 Armour Yards, to Northwood Investors for $79.5 million.
The net proceeds at closing totaled approximately $31.1 million, after the satisfaction of approximately $48.4 million of property-level debt and other closing costs.
Preferred Apartment Communities will redeem approximately 36,900 shares of its 6.00% Series A Redeemable Preferred Stock on September 13th, which represents 100 percent of the stock currently available to call at the company’s option. The company has redeemed approximately $580 million of the Series A preferred stock since September 30, 2020.
“By electing to remove the Armour Yards Portfolio from our transaction with Highwoods, we have further demonstrated our ability to maximize the value of our few remaining office assets,” said Joel Murphy, chairman and chief executive officer. “We will utilize the cash proceeds generated from this sale to continue to realign our balance sheet through this announced redemption of our Series A preferred stock.”
The shares will be redeemed at their initial stated value of $1,000 per share, plus accrued and unpaid dividends of $2.17 per share, for total proceeds of $1,002.17 per share.
Separately, on September 20, 2021, the company will pay the cash dividend on the preferred stock of $5.00 for the period from August 1, 2021 to August 31, 2021 to each holder of record on August 31, 2021.
Preferred Apartment Communities invests primarily in Class A multifamily properties, with select investments in grocery-anchored shopping centers. As of June 30, 2021, the company owned or was invested in 117 properties in 13 states, predominantly in the Southeast region of the United States.
For more Preferred Apartment Communities news, please visit their directory page.