ATLANTA--(BUSINESS WIRE)-- Post Properties, Inc. (NYSE: PPS) announced today the closing of five, cross-collateralized mortgage loans with Deutsche Bank Berkshire Mortgage, Inc., pursuant to the Federal Home Loan Mortgage Corporation (Freddie Mac) loan program, secured by mortgages on the following Post® communities: Post Briarcliff™, (bottom right photo) Post Crossing® and Post Glen® located in Atlanta, GA, Post Hyde Park® (top left photo) located in Tampa, FL, and Post Corners™ located in Fairfax Co., VA.
The mortgage loans have an aggregate principal amount of approximately $202.2 million, require fixed interest-only payments for the first two years and then principal and interest payments for the remaining term of the loan based on a 30-year amortization schedule.
The loans bear interest at a fixed rate of 5.99% and mature in ten years on February 1, 2019.At the end of December 2008, Post repaid approximately $39.2 million of secured indebtedness that was scheduled to mature in March 2009, using available cash from its October 2008 Freddie Mac financing.
Post expects to use the net proceeds from this most recent Freddie Mac financing to fully pay down the current outstanding balance on its $600 million unsecured revolving line of credit and expects to use the remaining net proceeds for general corporate purposes, including the funding of development projects currently under construction and to repay other existing and future debt obligations.
Said Christopher Papa (top right photo), the Company’s Chief Financial Officer, “This latest financing is part of our strategy to manage the balance sheet to stay in front of short-term liquidity requirements, including scheduled debt maturities and remaining development spending, by maintaining substantial unused line capacity and available cash equivalents.”
Post Properties owns 21,189 apartment homes in 58 communities, including 1,747 apartment units in five communities held in unconsolidated entities and 1,736 apartment units in five communities currently under construction and/or in lease-up.
Post Properties owns 21,189 apartment homes in 58 communities, including 1,747 apartment units in five communities held in unconsolidated entities and 1,736 apartment units in five communities currently under construction and/or in lease-up.
The Company is also developing and selling 361 for-sale condominium homes in three communities (including 129 units in one community held in an unconsolidated entity) and is converting apartment units in two communities initially consisting of 349 units into for-sale condominium homes through a taxable REIT subsidiary.CONTACT: Post Properties, Inc.Christopher Papa, 404-846-5028
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