Bluerock Buys Atlanta Metro Apartments for $76M
- Dec 14, 2016
Roswell, Ga.—Bluerock Residential Growth REIT Inc. (BRG) has acquired the 320-unit City Walk Apartments in Roswell, Ga. The company acquired the property for a total of about $76 million, or roughly $237,000 per unit. The buyer plans to improve property management and make modest, value-add renovations to unit interiors.
The property, which was built in 2015, features one- and two-bedroom units averaging nearly 900 square feet. Located on nearly 11 acres, it offers a large clubhouse, resort-style pool with tanning ledges, grilling area, covered outdoor seating, fitness center, and club room complete with kitchen and billiards table. There’s a business center with Wi-Fi, and a newly constructed dog park.
Roswell is in northern Fulton County, in the northern part of the Atlanta metro, and is a growing city. During the last five years, its population has grown about 7 percent, to 94,500. City Walk is within walking distance of downtown Roswell’s Historic Canton Street retail shopping and dining district.
To do the deal, BRG ponied up 98 percent of the venture’s equity requirement, or a little shy of $25.5 million, with an affiliate of the Carroll Organization, which investing the balance for a 2 percent stake in the venture. The transaction was further capitalized with a senior loan in the amount of about $51 million.
Bluerock anticipates that the acquisition will yield a cap rate of about 5.75 percent. That compares to estimated market cap rates of 4.75 percent to 5.25 percent for comparable assets, the company said.