Preferred Apartment Communities, Inc. (NYSE: APTS) announced that on August 29, 2016 it acquired a 169,500 square foot, 9-story Class A office building within Brookwood Village, an upscale mixed-use shopping destination located in the Mountain Brookarea of Birmingham, Alabama. The office building is 100% leased to a diversified tenant base, including PricewaterhouseCoopers, Merrill Lynch and Kinder Morgan, with an average remaining lease term of approximately 9 years. "This acquisition is consistent with our previously described strategy of holding a defined portion of our assets in properties other than our core multifamily communities," said Daniel M. DuPree, the Chief Investment Officer for PAC. John A. Williams, PAC's Chairman and Chief Executive Officer added, "We select these non-multifamily focused assets in property types in which we have considerable, proven experience and expertise which is certainly the case here." PAC financed this acquisition utilizing a first mortgage loan from Life Insurance Company of the Southwest for approximately $32.4 million and has a maturity date of September 1, 2031, a fixed interest rate of 3.52% per annum and will be interest only for the first year and thereafter will amortize based on a 27-year amortization. PAC intends to create a separate platform with other investors to own these type of assets and into which platform this asset may be placed.

About Preferred Apartment Communities, Inc.

Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States. As part of our business strategy, we may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and we may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. As a secondary strategy, we may acquire or originate senior mortgage loans, subordinate loans or mezzanine debt secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily related assets and invest not more than 20% of our assets, subject to any temporary increase unanimously approved by our board of directors, in other real estate related investments such as grocery-anchored shopping centers, senior mortgage loans, subordinate loans or mezzanine debt secured by interests in grocery-anchored shopping centers, membership or partnership interests in grocery-anchored shopping centers and other grocery-anchored shopping center related assets as determined by our manager as appropriate for us. At June 30, 2016, the Company was the approximate 96.4% owner of Preferred Apartment Communities Operating Partnership, L.P., or the Operating Partnership. Preferred Apartment Communities, Inc. has elected to be taxed as a real estate investment trust under the Internal Revenue Code of 1986, as amended, commencing with its tax year ended December 31, 2011.