NEW YORK, Oct. 20, 2016 /PRNewswire/ -- Bluerock
Residential Growth REIT, Inc. (NYSE MKT: BRG) ("BRG", the "REIT" or
the "Company") announced today that it has acquired the 480-unit
multifamily Nevadan Apartments (the "Nevadan") in Atlanta, Georgia. The Company acquired the
property through a joint venture for a total purchase price of
approximately $68.25 million, or
approximately $142,188 per
residential unit.
The acquisition is projected to yield a stabilized pro forma cap
rate of approximately 6.5% on execution of the Company's Value-Add
upgrade strategy, which compares favorably to estimated market cap
rates of 4.75% – 5.25% for comparable assets.
BRG invested 90% of the venture's equity requirement, or
approximately $23 million, with an
affiliate of the Carroll Organization investing the balance for a
10% stake in the venture. The transaction, which was sourced
off market, was further capitalized with a senior loan in the
amount of approximately $48
million.
The Nevadan, which was built in 1990, features one-, two- and
three-bedroom units averaging nearly 1,100 square feet. It is
located within Perimeter Center, one of Atlanta's fastest growing employment
submarkets, and features a large clubhouse as well as a resort
style swimming pool, poolside grill/lounge, 24-hour fitness center,
tennis courts and underground parking.
The property benefits from close proximity to I-285 and GA-400,
which provide easy access to employment nodes throughout the city.
Three major hospitals, known collectively as ''Pill Hill,'' are
five to seven minutes' driving distance from the property and
provide approximately 15,000 jobs. An added 9,000 jobs are being
created within 3 miles of the property as State Farm and
Mercedes-Benz establish new headquarters in Perimeter Center.
"We see significant upside potential for this property and
believe it to be a strong addition to the portfolio. The property
has good, intrinsic value, while the Perimeter Center submarket and
the larger Atlanta MSA show much promise for the coming years. Our
ability to source this property at a favorable cost basis makes it
possible for us to bring a strong product to market at competitive
rents," said Ramin Kamfar, Chairman
and CEO of BRG.
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.