Austin, Texas—Bluerock Residential Growth REIT Inc. announced the purchase of Deerfield Apartments in Austin, Texas, for $49 million. The company acquired the 324-unit apartment community through a joint venture. The property will be managed by Roscoe Properties.
Located at 8700 Brodie Lane, the community completed in 2001 features one-, two- and three-bedroom units averaging 950 square feet with amenities including a fitness center, business center, clubhouse, a pool with a spa and 735 parking stalls. The property is close to I-35 and US Route 1, which provide convenient access to downtown Austin.
“We are very optimistic about the upside potential for Deerfield. Our ability to purchase the property at a favorable cost basis, coupled with strong demand and ample room for value-add improvement, gives us good reason to expect that the property will be a strong performer and a solid contributor to the REIT,” Ramin Kamfar, chairman & CEO of BRG, said in prepared remarks.
The deal is expected to yield a stabilized pro forma cap rate of roughly 6.5 percent on execution of the company’s value-add upgrade strategy. BRG invested roughly 93 percent in the venture, which translates to approximately $15 million and an affiliate of F&B Capital invested a 7.5 percent stake in the venture.
Image courtesy of Yardi Matrix