NEW YORK, Oct. 22, 2015 /PRNewswire/ -- Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) ("BRG," "The REIT" or "the Company") announced today that it has closed on the sale of its North Park Towers property, in Southfield, Michigan. The property, which encompasses two 19-story apartment buildings, 313 apartment rental units and 13 retail/commercial spaces, sold for $18.2 million, generating an Internal Rate of Return of approximately 40% on, and a return of 1.68 times, BRG's equity investment in the project.
"With the sale of North Park Towers, BRG is fulfilling our commitment to prudent recycling of capital. We are exiting an older asset in a non-strategic market with very low average rents relative to our portfolio and doing so at a very healthy return. This will enable us to redeploy our capital into a Class A asset in our targeted high growth markets," said Ramin Kamfar, Chairman and CEO of BRG.
BRG expects the sale to generate approximately $7 million of net proceeds for reinvestment.
North Park Towers was constructed in 1967 as a premier luxury high-rise apartment. It underwent extensive renovations in 1999 and 2000.
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 listed on 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 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.