By Robert Demeter
Destin, Fla.–Bluerock Residential Growth REIT Inc. recently announced it has acquired the 340-unit Alexan Henderson Beach Apartments in Destin, Fla. The acquisition marks the company’s third purchase in the Sunshine State this year.
BRG acquired the luxury community at 4131 Commons Drive W. in an off-market deal from an affiliate of Trammell Crow Residential for $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 percent, which is in line with assets of similar quality in the market. BRG invested 100 percent of the equity requirement, approximately $17.2 million.
The 20-acre property, built in 2010, is one of the premier multifamily properties on the Destin market and will operate as The Preserve at Henderson Beach following the purchase. The community offers one- and two-bedroom residences averaging 892 square feet, each with upscale finishes, as well as 603 parking spaces. Community amenities include a clubhouse and lounge, business center, fitness center, resort-style pool, lake and a pet park.
“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 & CEO of BRG, in a prepared statement.
The property is conveniently located within walking distance to Henderson Beach State Park and one block from Destin’s main thoroughfare and the area’s primary retail and shopping destination, the Emerald Coast Parkway.
Bluerock plans to refurbish the common areas and bring rents in line with comparable properties. The company has engaged Greystar to manage the property.
Bluerock Residential Growth REIT Inc. is a real estate investment trust that focuses on acquiring a diversified portfolio of Class A apartment properties in demographically attractive growth markets. The company’s objective is to generate value through off-market/relationship-based transactions and improvements to operations and properties.
Photos courtesy of The Preserve at Henderson Beach