Refinances Mortgage Debt Securing Properties Held in Joint Ventures; Moody’s and S&P Affirm Ratings and Change Outlook
ATLANTA, GA--(BUSINESS WIRE)-- Post Properties, Inc. (NYSE: PPS) has announced the sale of its Post Oglethorpe® apartment community (top right photo) located in Atlanta, GA for a gross sales price of approximately $38.5 million.
ATLANTA, GA--(BUSINESS WIRE)-- Post Properties, Inc. (NYSE: PPS) has announced the sale of its Post Oglethorpe® apartment community (top right photo) located in Atlanta, GA for a gross sales price of approximately $38.5 million.
Post Oglethorpe® is a garden-style apartment community located in the Brookhaven area of Atlanta and consists of 2
50 units with an average unit size of approximately 1,150 square feet. The community was completed in 1994. The buyer was not disclosed.
50 units with an average unit size of approximately 1,150 square feet. The community was completed in 1994. The buyer was not disclosed. Post expects to report a gain of approximately $23 million relating to this sale.
In addition, Post announced today that it has closed two 5-year mortgage loans with Fannie Mae to refinance existing debt secured by mortgages on its Post Biltmore™ community in Atlanta, GA (middle left photo) and its Post Massachusetts Avenue™ community in Washington, D.C. (bottom right photo)
Each of these communities is held in an unconsolidated joint venture, in which Post holds a 35% interest. The Post Biltmore™ mortgage loan has a principal amount of approximately $29.3 million, requires fixed interest-only payments at 5.83% an
d matures on September 1, 2013.
d matures on September 1, 2013. The Post Massachusetts Avenue™ mortgage loan has a principal amount of approximately $50.5 million, requires fixed interest-only payments at 5.82% and matures on September 1, 2013.
Both of these loans are pre-payable without penalty beginning after August 2011.
The Company also announced that Moody’s Investors Service and Standard & Poor’s last week affirmed Post's senior unsecured credit ratings of Baa3 and BBB, respectively.
Moody’s also revised the rating outlook to stable from developing for Post Properties, Inc. and Post Apartment Homes, L.P., and S&P removed the Company from Credit Watch while changing its outlook to negative. These rating affirmations and outlook changes follow Post’s announcement that it had concluded its formal process to pursue a potential sale or other business combination.
CONTACTS: Post Properties, Inc., Christopher Papa, 404-846-5028 or pbutler at pbutler@postproperties.com.
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