Bluerock Invests in Atlanta Multifamily Project
- Jun 08, 2015
Atlanta—Bluerock Residential Growth REIT Inc. (BRG) has agreed to provide most of the equity necessary to develop the Cheshire Bridge Apartments, a 285-unit apartment community in Atlanta. Total projected development costs are estimated at $48.2 million, or $169,000 per unit.
Cheshire Bridge will feature studios, along with one- and two-bedroom units averaging 871 square feet. Located at the intersection of Cheshire Bridge Road and I-85, the development has access to the Buckhead and Midtown neighborhoods, which are major employment nodes in Atlanta. Georgia Tech and Emory University are fewer than three miles away.
Common amenities include a resort-style pool, fitness center, and business and media centers. Unit interiors will be condo quality, according to BGR, featuring 9-foot ceilings, stainless steel appliances, granite countertops, and garden bath tubs.
The New York-based REIT is making a preferred equity investment of about $15.5 million which, along an investment by Bluerock Real Estate LLC, will total roughly 90 percent of the equity needed for the development. Atlanta-based Catalyst Development Partners, BRG’s development partner on the project, is contributing the other 10 percent.
BRG expects a return on cost for the project of about 7 percent at stabilization, based on development costs and projected rental income. According to the company, that compares to estimated market cap rates of 4.5 percent to 5.25 percent for comparable product.