Preferred Apartment Communities Inc. sold two class A multifamily communities in Kansas City, Kan., and Atlanta for gross proceeds of approximately $113.6 million during the first quarter.

The two properties had a combined average annualized return of approximately 19.1%.

The company said proceeds from the sale were deposited into a 1031 like-kind exchange account to be used for the future acquisition of multiple assets, including the acquisition of a class A multifamily community in Birmingham, Ala.