AMERICA FIRST
APARTMENT INVESTORS, INC. COMPLETES ACQUISITION OF CORNERSTONE
APARTMENTS FOR
$37.5 MILLION
Omaha, Neb., December 21,, 2006 – America First
Apartment Investors, Inc.(NASDAQ: APRO), a multifamily real estate
investment trust, announced today that it has completed the
acquisition of the Cornerstone Apartments, a 420 unit complex
located in Independence, Missouri, a fast-growing suburb of Kansas
City, for approximately $37.5 million. Given the level of cash
flow generated currently by this property, the Company expects the
acquisition to be accretive to its funds from operations.
The acquisition was funded through a combination of the proceeds
from the November sale of the Delta Crossing property, the release
of cash collateral no longer required on one of the Company’s
mortgage bonds, and a $25.5 million loan drawn down upon the
Company’s credit facility with Fannie Mae and Wells Fargo
Multifamily Capital. The debt financing is at a fixed rate of 5.44%
for a term of 10 years. During the first five years of the
loan, the Company is only required to make monthly payments of
interest. In the sixth through tenth years, the Company is
obligated to make principal payments based upon a 30 year
amortization of the note.
Jack Cassidy, APRO’s Chief Executive Officer, stated,
“The Cornerstone Apartments is an ideal fit with our growing
portfolio and our strategic plan to acquire newer multifamily
properties with positive revenue growth prospects. We are committed
to e
