NEW YORK, Dec. 3, 2015 /PRNewswire/ -- Bluerock Growth Fund ("BGF" or the "Company") completed the successful sale of Artisan on 18th, a Class A, 153-unit, multifamily development in downtown Nashville, Tennessee. The property sold for $35.2 million, generating a return of two times (2x) on the Company's original equity investment, and a net internal rate of return (IRR) of approximately 35.2%, after a hold period of just 28 months. Pricing for the development exceeded the Company's originally-projected sale price range of $28-$31 million.
"Artisan on 18th has been a tremendous success story for BGF, and has validated our investment approach. We were able to effectively double our initial investment by recognizing an unmet demand in the Music Row district," said Ramin Kamfar, CEO of Bluerock. Development and lease-up were completed in June 2015 -- ahead of projections in terms of rents and velocity, both -- and the property was 100% leased at the time of sale, the Company said.
Artisan is the second sale by BGF this year, and in both cases investors received distributions at or above 2x. In January 2015, BGF sold 23Hundred Berry Hill in Nashville, Tennessee for $61.2 million. The sale generated a return of nearly 2x on the Company's original equity investment, and a net internal rate of return (IRR) of approximately 48.1%, after a hold period of just 22 months.
Artisan on 18th was purchased in a joint venture with multifamily developer Stonehenge DCM, LLC ("Stonehenge"), which oversaw development, and with affiliates of Bluerock Real Estate.
The boutique-style community caters to the Music Row/West End demographic, building on the success of another Bluerock project in Nashville, Note 16. Located at the center of Nashville's academic, medical and entertainment industries, the Artisan on 18th development was able to attract tenants from an industry base that supports nearly 50,000 jobs in the area. Community amenities include a landscaped courtyard with sundeck, an outdoor grilling area and fireplace, a state-of-the-art fitness center, cyber clubroom with coffee bar and business center, a pet park, and a parking garage. Unit amenities include class-defining features such as granite countertops, high-end flooring, designer cabinetry, full size washers/dryers, private balconies, and nine-foot ceilings.
About Bluerock Real Estate
Bluerock Real Estate is a national real estate investment firm founded to provide smart institutional investments for individual investors. Bluerock principals possess over 100 years aggregate experience and have transacted on over 30 million square feet and $10 billion in acquisitions, primarily on behalf of leading U.S. institutional investors. Bluerock's current portfolio consists of more than 12 million square feet of multifamily, office and retail properties with over $2 billion of managed assets across the United States.
Bluerock Growth Fund, LLC is a closed investment program; not open to new investment.
© 2015 BLUEROCK REAL ESTATE, LLC. ALL RIGHTS RESERVED.
SOURCE Bluerock Real Estate