All Is Peachy For Preferred Apartment Communities

Multifamily fundamentals still strong; market fundamentals reflect new supply and solid demand. As you can see below, the tan columns show that last year ended with over 70k net move-ins in the final three months – the best seasonally-adjusted quarterly total in six years.

After quarterly demand firmed throughout the year, the calendar-year tally rose to 230k units absorbed – very close to the early-cycle peak in 2010.

Multifamily starts appear to have peaked, forecasted to drift down in the wake of less debt capital available, interest rate increase and pressure on yields. New supply forecasted to decline; job growth estimates and rising ages improve prospects for increased demand.

APTS has maintained a commitment to investing in Class A multifamily assets along with a secondary strategy of diversifying a portion of investments in non-multifamily assets such as grocery-anchored shopping centers.

The loan program is structured for total interest returns (including current and accrued interest) between 10.5% and 16%. Most all loan contracts contain options to purchase assets at stabilization at predetermined price or discount to then market value. This provides an opportunity (not obligation) to acquire newly built assets in targeted submarkets from developers who build to APTS' specifications.