Bluerock Residential Growth REIT Acquires 336-Unit Citrus Tower Property in High-Growth Clermont, FL
New York, NY (October 24, 2017) – Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) (“BRG”, the “REIT” or the “Company”) announced today that it has acquired the 336-unit multifamily community Citrus Tower (“Citrus Tower”) in Clermont, Florida. The REIT acquired the property for a total purchase price of approximately $55.25 million, or roughly $164,435 per residential unit.
The transaction was financed with a senior loan in the amount of approximately $41.4 million at an interest rate of 4.07%. The acquisition is projected to yield a pro-forma stabilized cap rate of approximately 6.5%.
Citrus Tower, which was built in 2006, features one-, two- and three-bedroom units averaging nearly 1,099 square feet. The property features a resort style swimming pool with summer kitchen and fire pit, a fitness center, an outdoor volleyball court and tennis court, an outdoor playground and a dog park. It has undergone $1.15 million in amenity upgrades including new exterior paint and lighting, landscape improvements, pool resurfacing, and upgrades to the dog park.
The property is in Clermont, Florida, a high-growth suburb of Orlando characterized by strong demographics and minimal new supply. The Orlando market, currently ranked third in the nation for job growth, is projected to add 160,065 new jobs through 2021, while significant job growth in the leisure/hospitality and professional/business sectors over the past year has already begun to generate robust apartment demand. Submarket demographics are above those of the Orlando MSA in terms of median household income and population growth. The property is located just off Clermont’s major thoroughfare, FL-50.
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 22, 2017, 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.