NEW YORK, March 22, 2016 /PRNewswire/ -- Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) ("BRG", the "REIT" or the "Company") announced today that it has acquired the 340-unit Alexan Henderson Beach Apartments in Destin, Florida. BRG acquired the luxury property off market for a purchase price of $53.7 million, or approximately $158,000 per unit.
The acquisition is projected to yield a pro forma year one stabilized cap rate of approximately 6.4%, which is in line with assets of similar quality in the market. BRG invested 100% of the equity requirement, or approximately $17.2 million.
The property, which will operate as The Preserve at Henderson Beach, was built in 2010 and is among the premier multifamily properties in the Destin submarket. The property offers one- and two- bedroom residences averaging 892 square feet, each with upscale finishes. Community amenities include a clubhouse and lounge, state-of-the-art fitness center, resort-style pool, lake and a pet park.
Located in northwest Florida's "Emerald Coast", Destin is among the most affluent and desirable communities in the Florida Panhandle region, its economy benefitting measurably in recent years from a surge in tourism-related spending. Approximately 17 million tourists visit the area annually, and its beaches are ranked among the top in the US. The property, has outstanding beach proximity within walking distance to Henderson Beach State Park and is one block from Destin's main thoroughfare, Emerald Coast Parkway, the area's primary retail and shopping destination.
The Company plans to refresh the common areas and bring rents, which are now slightly below market, into line with comparable properties. The Company has engaged Greystar to manage the property.
"We are glad to be able to tap the strength and stability of the Destin market. The Henderson Beach property provides an opportunity to generate steady, solid returns for the REIT's portfolio," 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.
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SOURCE Bluerock Residential Growth REIT, Inc.