Preferred Sells Its Student Housing to TPG Real Estate for Nearly $480M

Preferred Apartment Communities has entered into an agreement to sell its student housing portfolio to TPG Real Estate Partners for $478.7 million. The transaction is expected to close in the fourth quarter.

Marketed by CBRE, the portfolio includes eight, high-quality student housing communities in Arizona, Florida, Georgia, North Carolina, and Texas. The communities include more than 6,000 beds with a range of amenities.

The move backs up a shift in Preferred Apartment Communities’ goals, said CEO Joel Murphy in prepared remarks. “This is consistent with our previously stated objectives to exit the student housing space, simplify our focus to our core Sunbelt multifamily business, and improve our balance sheet.”

Preferred’s decision to exit student housing may be coming at a precipitous time, according to new  data RealPage will be releasing Tuesday in a webcast. It found that the Fall semester started with the weakest leasing seen in a decade of

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Preferred Apartment Communities Announces Agreement to Sell its Student Housing Portfolio to TPG Real Estate Partners

ATLANTA, Sept. 24, 2020 /PRNewswire/ — Preferred Apartment Communities, Inc. (NYSE: APTS) (the “Company”) announced today that it has entered into a Purchase and Sale Agreement to sell its student housing portfolio (the “Portfolio”) to TPG Real Estate Partners (“TREP”) for $478.7 million. The transaction is expected to close in the fourth quarter of 2020 and is subject to customary closing conditions. The Portfolio was marketed for sale by CBRE.

Preferred Apartment Communities
Preferred Apartment Communities

The Portfolio includes eight, high-quality student housing communities located in Arizona, Florida, Georgia, North Carolina, and Texas. The communities include more than 6,000 beds with a wide  range of indoor and outdoor amenities. The communities to be sold include:

  • NxNW, a 679-bed student housing community located in Tallahassee, Florida

  • Knightshade, an 894-bed student housing community located in Orlando, Florida

  • The Tradition, an 808-bed student housing community located in College Station,

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