NEW YORK, Aug. 20, 2015 /PRNewswire/ -- Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) ("BRG" or "the Company") announced today that it has acquired 322 units within a Class A apartment community in Charlotte, NC known as the Ashton Reserve Apartments. The acquisition is the first phase ("Ashton Reserve I") of a two-phase acquisition that BRG will make in the community. The second phase, for the acquisition of Ashton Reserve II, is slated for early next quarter and will add an additional 151 units.
BRG acquired Ashton Reserve I for $44.75 million, or approximately $139,000 per unit. The Company made an equity investment of approximately $13 million to acquire Ashton Reserve I, and assumed the existing $31.9 million mortgage loan.
Ashton Reserve I and II are off-market transactions sourced directly with the seller. BRG was able to move quickly to structure and execute the complex two-part transaction, wherein Ashton Reserve I was already operating and carrying pre-existing mortgage debt while Ashton Reserve II was still under development. This enabled BRG to acquire Ashton Reserve I at a favorable nominal cap rate of 6.0% as compared to local market cap rates of approximately 5.0%. BRG expects to acquire Ashton Reserve II at a cap rate of approximately 5.8%.
Built in two stages in 2013 and 2015, the Ashton Reserve Apartments feature high-end one-, two- and three-bedroom layouts, offering some of the most desirable in-unit features available in Charlotte's Northlake submarket. All units feature nine foot ceilings with a stainless steel appliance package that includes a full-sized refrigerator, granite countertops, undermount sinks, and full size washer/dryers. Community amenities include lush landscaping, two clubhouses, fitness facilities, a swimming pool with oversized deck and grilling stations, as well as a business center and a private media center.
The Charlotte, NC market is currently reporting strong population growth among the rental-oriented 20-year-old to 34-year-old demographic, and BRG management believes that Ashton Reserve is well situated to take advantage of that growth. The Northlake submarket in which the property is located is approximately eight miles from Uptown Charlotte and is anchored by the one million square foot Northlake Mall, a premier retail destination for the affluent communities in the North Charlotte metropolitan area. Ashton Reserve is in close proximity to Lake Norman as well as to regional employers, major travel routes and the Charlotte-Douglas International Airport.
"This transaction has benefitted tremendously from BRG's deal sourcing capability as well as our ability to execute complex transactions quickly," said Ramin Kamfar, Chairman and CEO of BRG. "Ashton Reserve I is an upscale and very marketable asset, and we are pleased to be able to add it to our portfolio at a favorable cost basis."
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. The Company 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. BRG is listed on the Russell 2000 and Russell 3000 Indexes. The Company 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: http://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. 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. 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 March 4, 2015, 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.
SOURCE Bluerock Residential Growth REIT, Inc.