NEW YORK, Aug. 15, 2016 /PRNewswire/ -- Bluerock
Residential Growth REIT, Inc. (NYSE MKT: BRG) ("BRG" or the
"Company") announced today that it has closed on the sale of its
Springhouse Apartment Homes property ("Springhouse"), located in
Newport News, Virginia. The
property, which encompasses 24 two-story apartment buildings, 413
apartment rental units and 28 acres, sold for $38.2 million, generating an internal rate of
return of approximately 17% on BRG's equity investment in the
project, for a return on equity of 1.8x. The Company acquired the
property in 2009.
"With the sale of Springhouse, BRG continues to fulfill our
commitment to strategic recycling of capital. We plan to redeploy
capital from the transaction into higher-growth assets located
within our current target markets," said Ramin Kamfar, Chairman and CEO of BRG.
BRG expects the sale to generate approximately $9 million of net proceeds for reinvestment.
About Bluerock Residential Growth REIT, Inc.
Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) is a real
estate investment trust that focuses on acquiring a diversified
portfolio of Class A institutional-quality apartment properties in
demographically attractive growth markets to appeal to the renter
by choice. The Company's objective is to generate value through
off-market/relationship-based transactions and, at the asset level,
through improvements to operations and properties. BRG generally
invests with strategic regional partners, including some of the
best-regarded, private owner-operators in the United States, making it possible to
operate as a local sharpshooter in each of its markets while
enhancing off-market sourcing capabilities. The Company is included
in the Russell 2000 and Russell 3000 Indexes. BRG has elected to be
taxed as a real estate investment trust (REIT) for U.S. federal
income tax purposes. For more information, please visit our website
at: www.bluerockresidential.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. These forward-looking statements
are based upon the Company's present expectations, but these
statements are not guaranteed to occur. Furthermore, the Company
disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying
assumptions or factors, of new information, data or methods, future
events or other changes. Investors should not place undue
reliance upon forward-looking statements. For further discussion of
the factors that could affect outcomes, please refer to the risk
factors set forth in Item 1A of the Company's Annual Report on Form
10-K filed by the Company with the U.S. Securities and Exchange
Commission ("SEC") on February 24,
2016, and subsequent filings by the Company with the SEC. We
claim the safe harbor protection for forward looking statements
contained in the Private Securities Litigation Reform Act of
1995.
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SOURCE Bluerock Residential Growth REIT, Inc.