New York, NY – Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) (“BRG” or “the Company”) announced today that it has acquired a 306-unit Class A apartment community in the South Orlando submarket, currently known as the Venue Apartments and to be rebranded as ARIUM Grande Lakes.
The asset was acquired for $43.3 million, a considerable discount from its 2006 sale price of $49.1 million. With a pro forma cap rate of 6%, the property was acquired on attractive terms given local market cap rates of 5.25% – 5.50%. BRG projects first year AFFO yield of approximately 12%, based on trailing operations. The purchase was capitalized with a senior mortgage from Fannie Mae and approximately $14.4 million of equity from BRG. BRG’s joint venture partner in the transaction, the Carroll Organization, contributed 5% of the equity.
“We believe this is an excellent core plus investment with an opportunity to grow cash flow through enhanced property management and a modest value-add renovation to the unit interiors”, notes Ramin Kamfar, Chairman and CEO of BRG.
The property includes lavish amenities such as a sand volleyball court, a 24 hour fitness center, a car care area, a resident business center, a barbecue pavilion with grills, limited access gated entry, and detached garages and storage rooms. The beautifully appointed one, two, and three bedroom units range from 788 to 877 square feet and offer walk-in closets, full appliance packages, designer light fixtures, luxurious garden bathtubs, autumn stained cabinetry, and washers and dryers in every unit.
The property is located approximately 10 miles south of downtown Orlando, at the heart of the area’s main attractions, including Walt Disney World, Sea World, Universal Studios, and the Orange County Convention & Civic Center, and ¼ mile east of 1,100 room J.W. Marriott and Ritz Carlton at Grande Lakes Resort, a mixed-use luxury development with hotels, a Greg Norman signature golf course, swimming pool complexes, child care, an outdoor playground, and retail shops.
About Bluerock Residential Growth REIT, Inc.
Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) is a real estate investment trust formed to acquire a diversified portfolio of institutional-quality apartment properties in demographically attractive growth markets throughout the United States. The Company has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
About Carroll Organization
Carroll Organization is headquartered in Atlanta, Georgia, and maintains regional offices in Houston, Orlando, and Miami. The current portfolio of owned properties is approximately 12,000 units, and their fully integrated platform includes a property management division which has responsibility for approximately 14,000 units. Their asset management group oversees assets valued in excess of $1.3 billion and their fund management group has raised over $350 million in equity.
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. Forward looking statements are statements that are not historical, including statements regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could.” Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward looking statements. These forward looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur, including the property’s ability to generate AFFO as projected. 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” section of the prospectus dated October 2, 2014 and filed by the Company with the Securities and Exchange Commission (“SEC”) on October 3, 2014, 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.