Apartment developer to buy grocery centers, spin-off new firm
Preferred Apartment Communities, an Atlanta-based apartment company, said Monday it plans to acquire nine grocery-anchored shopping centers across the Southeast in a move designed to diversify its holdings.
The moves are also a precursor to Preferred’s plan to spin off the retail centers into a new real estate investment trust, the company said.
Preferred, founded by former Post Properties chief John Williams, said it has the nine centers under contract with a total purchase price of $125.2 million, plus certain transaction costs.
The properties include grocery-anchored developments in Atlanta, Columbus, Charleston, Miami, Orlando, Houston and Nashville. The centers have Publix, Kroger or Bi-Lo grocery stores.
In a news release, the company said it plans to build a separate entity, New Markets Properties, which will hold the shopping center investments. New Markets ultimately will be spun off into a publicly traded firm headed by longtime retail executive Joel Murphy, with Preferred retaining an ownership stake.
About the Author
J. Scott Trubey is the senior editor over business, climate and environment coverage at The Atlanta Journal-Constitution. He previously served as a business reporter for the AJC covering banking, real estate and economic development. He joined the AJC in 2010.
