Port St. Lucie, Fla.—Bluerock Residential Growth (BRG) REIT recently announced that it has purchased a 320-unit multifamily property in Port St. Lucie, Fla., known as Apex Prima Vista Apartments. The company acquired the community through a joint venture for a total purchase price of $38 million, or approximately $120,000 per unit.
The acquisition is projected to yield a stabilized pro forma cap rate of approximately 7.3 percent on execution of the company’s value-add upgrade strategy. BRG invested 85 percent of the venture’s equity requirement (roughly $11 million), with an affiliate of the Carroll Org. investing the balance for a 15 percent stake in the partnership. The transaction was further capitalized with a senior loan in the amount of nearly $27 million.
“Apex presents a clear value-add opportunity in a growing market with constrained supply. The property is generating solid in-place cash flows today and the rapid expansion of the Port St. Lucie MSA signals room for ample rent growth. Our ability to source Apex at a favorable cost basis makes it possible for us to improve the property and meet the needs of the market’s expanding new employment base,” said Ramin Kamfar, chairman & CEO of BRG, in a prepared statement.
Apex Prima Vista Apartments is located a half mile from Federal Highway/US-1, which provides easy access to major employment hubs. The property is situated within 20 minutes of the Torrey Pines Institute for Molecular Studies, the Tradition Center for Innovation and Treasure Coast Research Park, three strong centers of science and technology employment within South Florida. The 2003-built community features one-, two- and three-bedroom units, averaging nearly 1,050 square feet. Amenities include a clubhouse, two central lakes, two pools, recreation courts, a fitness center and a playground.
The Port St. Lucie market has had very limited new multifamily development in recent decades and is now reporting population growth. The city nearly doubled in size since 2000, and is currently the eighth largest in Florida, surpassing Ft. Lauderdale. The Port St. Lucie MSA is ranked among the fastest-developing U.S. metropolitan areas for employment growth in the coming five years. Roughly 17,000 new jobs are forecasted in the metro over the next five years.
Image courtesy of Multifamily Biz