Press Release February 25, 2020

Preferred Apartment Communities Announces Internalization Transaction

Alston & Bird client Preferred Apartment Communities Inc. simplified its operating structure by buying its manager, Preferred Apartment Advisors LLC, and its sub-manager, NMP Advisors LLC, for an aggregate purchase price of $154 million, plus up to $25 million of potential additional earnout consideration.

The company anticipates the transactions will generate cost savings in 2020 of approximately $32 million; simplify its structure through the integration of all its investment activity, corporate operations, and resources under a single, transparent corporate structure; and result in the continued leadership by the existing management team.

Listed on the New York Stock Exchange, Preferred Apartment Communities is a real estate investment trust focused on multifamily housing, office buildings, and grocery-anchored retail in growth markets throughout the U.S.

Advising a special committee of the board of directors formed by Preferred Apartment Communities to guide the transaction and ensure its fairness is an Alston & Bird team led by partners Rosemarie Thurston, David E. Brown, Michael Kessler, Jim Croker, Justin Howard and associates Ian Jones and Dougie Barnard.
Media Contact
Alex Wolfe
Communications Director