New York, NY (April 6, 2017) – Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) (“BRG”, the “REIT” or “the Company”) announced today that it has acquired the 301-unit, Class-A multifamily Wesley Village Apartments (“Wesley Village”) in Charlotte, North Carolina. The REIT acquired the property for a total purchase price of approximately $56.85 million, or roughly $189,000 per residential unit.
The Company will implement a $2 million renovation program to upgrade units and common spaces, and projects the acquisition will yield a pro-forma stabilized cap rate of 6.0%.
BRG purchased the property with an investment of $16.5 million, financing the remainder with a fixed rate loan of $40.5 million from Freddie Mac.
Wesley Village is in the heart of a vibrant urban submarket but offers residents the ample floorplans and surface parking typical of residences found in lower density, suburban locations. Built in 2010, the property features studio, one- two- and three-bedroom units averaging a generous 1,025 square feet, a resort-style saltwater pool with grilling area and wet bar, fitness center, game room with billiards table, business center with Wi-Fi, and a dog park.
The property is situated just one mile from the thriving Uptown CBD, fewer than seven miles from the Charlotte airport and directly within the expanding and sought-after FreeMoreWest submarket. FreeMoreWest has sustained a robust population growth of more than 10% since 2010, while the greater Charlotte metro area, fueled by an influx of new firms to the area, has added more than 30,000 jobs over the past year.
“The Wesley Village Apartments property is squarely in the path of growth for Bluerock. We were able to purchase the property at a very favorable cost basis and, with implementation of value-added improvements and management efficiencies, we are confident that Wesley Village will be a strong performer for the REIT as well as a highly-competitive player in its market.” 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.