Preferred Apartment Communities Agrees to Purchase Trophy Office Building in Atlanta

ATLANTA — Preferred Apartment Communities Inc. has agreed to purchase Three Ravinia, an 813,748-square-foot trophy office building located at 3 Ravinia Drive in Atlanta’s Central Perimeter office submarket. Built in 1991 by Hines, the 31-story office building was 98 percent leased at the time of sale to tenants such as InterContinental Hotels Group (IHG) and State Farm, with an average remaining lease term of approximately 10 years. Last summer IHG renewed its lease to keep its corporate headquarters at Three Ravinia. PAC’s operating partnership, Preferred Apartment Communities Operating Partnership LP, committed to acquire Three Ravinia pursuant to a signed agreement of purchase and sale with the current owner, SPUS6 Three Ravinia LP. The sales price was undisclosed, but the property traded for $145 million in 2013, according to media reports. PAC plans to fund the transaction using a combination of cash on hand, borrowings from its senior secured credit facility with KeyBank NA, proceeds from stock issuances and proceeds from selling other assets. PAC also applied for a non-recourse loan with John Hancock for 55 percent of the purchase price.