Preferred Apartment Communities, Inc. (NYSE: APTS) today announced that on May 14, 2020 it closed on a loan investment of up to approximately $10.0 million in connection with TDK Development's plans to develop Vintage Jones Franklin, a 277-unit, mid-rise surface parked Class A multifamily community located in Raleigh, North Carolina, expected to deliver first units in fall 2021. The loan investment has an outside maturity date of May 14, 2025, co-terminus with the construction loan.

Jeff Sherman, the Company's President of Multifamily said "While COVID-19 is impacting all financial markets, we are seeing a positive shift in the financial terms and capital structure of our real estate loan investment program. The project is additionally capitalized with a low levered construction loan and a significant equity contribution from our sponsor. We believe that continued and select loan investments are an effective use of our capital resources and should provide us with an attractive and accretive return on our investment." Mr. Sherman continued, "Vintage Jones Franklin is our third investment with TDK Development, a preeminent Sunbelt multifamily developer, and provides us with an opportunity to invest in, and have certain rights to acquire, a Class A multifamily community in the highly desirable Raleigh market consistent with our long-term multifamily strategy."

About Preferred Apartment Communities, Inc.

Preferred Apartment Communities, Inc. (NYSE: APTS) is a real estate investment trust engaged primarily in the ownership and operation of Class A multifamily properties, with select investments in grocery anchored shopping centers, Class A office buildings, and student housing properties. Preferred Apartment Communities' investment objective is to generate attractive, stable returns for stockholders by investing in income-producing properties and acquiring or originating real estate loans. As of March 31, 2020, we owned or were invested in 123 properties in 15 states, predominantly in the Southeast region of the United States. Learn more at www.pacapts.com.