Preferred Apartment Communities, Inc. says it has closed on a loan investment of up to approximately $10 million in connection with TDK Development’s plans to develop Vintage Jones Franklin, a 277-unit, mid-rise surface parked Class A multifamily community in Raleigh, expected to deliver first units in fall 2021.
“While COVID-19 is impacting all financial markets, we are seeing a positive shift in the financial terms and capital structure of our real estate loan investment program,” Jeff Sherman, the company’s president of multifamily said in a statement.
“The project is additionally capitalized with a low levered construction loan and a significant equity contribution from our sponsor. We believe that continued and select loan investments are an effective use of our capital resources and should provide us with an attractive and accretive return on our investment.”
“Vintage Jones Franklin is our third investment with TDK Development, a preeminent Sunbelt multifamily developer, and provides us with an opportunity to invest in, and have certain rights to acquire, a Class A multifamily community in the highly desirable Raleigh market consistent with our long-term multifamily strategy.”