Preferred Campus Communities Buys 427-Unit Student Housing

Preferred Campus Communities LLC, a wholly owned subsidiary of Preferred Apartment Communities Inc., expanded its student housing portfolio by acquiring The Tradition, a 427-unit, 808-bed student housing complex in College Station, TX. The Tradition, at 301 Church Ave., is one block from Texas A&M University. Haven Campus Communities of Atlanta sold the 2000-built property for an undisclosed price.

The buyer, also headquartered in Atlanta, financed the acquisition through a $30 million non-recourse first mortgage bridge loan from Macquarie Group. The loan has a floating rate interest of 400 basis points over the 30-day LIBOR, with a three-year, interest-only term. The Brazos County Central Appraisal District valued the asset at $22.3 million.

Preferred Campus ended up with a renovated property. During its hold, Haven Campus Communities redesigned amenities, including a resort-style pool, 24-hour fitness center, computer lab, clubhouse and theater room.

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