Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) announced today that it deployed approximately $189 million of equity into approximately $509 million of real estate transactions during the fourth quarter of 2017. These transactions are comprised of the acquisition of 1,646 units across four properties, the origination of three development mezzanine loans totaling 784 units, and the buyouts of minority ownership interests in five assets totaling 1,377 units. The Company expects its first full-quarter AFFO contribution from these assets in the first quarter of 2018.
- The acquisitions include 1,042 units in Orlando, FL and 604 units across Greenville, SC and Birmingham, AL, and totaled approximately $260 million of gross investment. Year one cap rates for these new investments average 5.3% and are projected to stabilize at approximately 6.5%.
- The three mezzanine loan investments include development projects totaling 784 units and approximately $241 million in total development cost. Each mezzanine loan will generate a current 15% annualized return for BRG.
- As part of the BRG's efforts to simplify its structure, the Company invested approximately $8 million to increase its ownership stake to 100% in each of its Preston View, Wesley Village, Arium Grandewood and Park & Kingston properties, and to 92% in its Enders Place at Baldwin Park property.
"We are excited to deploy capital through a combination of longstanding relationships and off-market transactions in key high growth markets," stated Ramin Kamfar, Chairman and CEO of BRG. "Our ability to make accretive acquisitions of well-located assets in our target knowledge-economy growth markets coupled with our value-add business plan to enhance both amenities and unit interiors will drive long-term shareholder value."
Bluerock Residential Growth REIT, Inc.
Bluerock Residential Growth REIT, Inc. (NYSEAmerican: BRG) is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy 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 Core+ improvements to properties and to operations. 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 the Company's website at www.bluerockresidential.com.