Preferred Apartment Communities, Inc. Announces Participation Agreement with Certain Affiliates of Westport Capital Partners LLC
ATLANTA, Aug. 19, 2014 /PRNewswire/ — Preferred Apartment Communities, Inc. (the “Company” or “PAC”) today announced that it has entered into a participation agreement with certain affiliates of Westport Capital Partners, LLC (“Westport”), a privately-held real estate investment firm, to capitalize a mezzanine loan investment of up to $17.2 million in connection with a 304-unit multifamily development in Northern Virginia. In connection with providing this mezzanine loan, PAC received an option to purchase the multifamily community upon completion and stabilization. PAC expects to partner with affiliates of Westport on several similar multifamily mezzanine loan opportunities representing approximately $275 million in total development costs. MLV & Co. LLC (“MLV”), a New York investment bank, advised PAC on the structuring of the participation arrangement with affiliates of Westport.
“We are delighted to have the opportunity to partner with Westport Capital Partners LLC,” John A. Williams, Chairman of the Board and Chief Executive Officer of PAC, noted. “Mezzanine lending has been an important part of the growth of PAC. We believe this arrangement will provide a template for a series of follow up deals that will enable us to continue this strong growth.”
Howard Fife, a Principal at Westport commented, “We have followed PAC’s growth trajectory over the last couple of years and are delighted to have the opportunity to invest with them in their robust pipeline. They have excellent management and development experience and we are excited by the projects which this arrangement contemplates funding.”