Columbus Shopping Center Sold

Staff Report From Columbus CEO

Thursday, October 2nd, 2014

Preferred Apartment Communities, Inc. today announced its acquisition on September 30, 2014 of six grocery-anchored necessity retail shopping centers with an aggregate of approximately 438,000 rentable square feet in the Orlando and Tampa, FL, Atlanta and Columbus, GA, Charleston, SC, and Houston, TX areas for an aggregate purchase price of approximately $74.2 million, exclusive of acquisition- and financing-related transaction costs. The Company transferred its right to purchase the seventh shopping center in the portfolio, located in Miami, Florida, to Publix. "The addition of these six assets to our current portfolio broadens the base of our retail platform. We believe these centers have great economic and strategic value for the Company," said Leonard A. Silverstein, PAC's President and Chief Operating Officer.

PAC acquired these assets through its wholly-owned subsidiary New Market Properties, LLC.  Joel T. Murphy, President and Chief Executive Officer of New Market Properties, LLC, said "We believe these six shopping centers are in areas with strong economic fundamentals and have solid anchor tenants, and feel these acquisitions will be accretive to our stockholders in both the short and long term."  These acquisitions were financed utilizing separate first mortgage loans for each property from Forethought Life Insurance Company and Transamerica Financial Life Insurance Company for an aggregate amount of approximately $47.0 million in addition to available funds. Each first mortgage loan has a maturity date of October 1, 2019, has a fixed interest rate of either 3.48% or 3.58% per annum, and amortizes based on a 30-year amortization.