BRG Acquires $36M Alabama Community

Bluerock Residential Growth REIT Inc. bought a studio, one-, two- and three-bedroom apartment unit. Springs at Greystone is situated in the top-tier suburban district in Birmingham, Ala. The firm plans to renovate the 300-unit building.
Springs at Greyston,
Springs at Greyston, 7278 Cahaba Valley Road in Birmingham, Ala.

Bluerock Residential Growth REIT Inc. purchased a 300-unit multifamily community for $36.2 million.

Springs at Greystone is a 2007-built garden-style apartment community in the East Birmingham submarket of Birmingham, Ala. The property is located at 7278 Cahaba Valley Road, in the suburban district of Greystone, within the active “280 Corridor” commercial hub. The property’s unit mix consists of studio, one-, two- and three-bedroom apartments. US-280 is less than a mile away. The community features a resort-style pool with outdoor kitchen, a 24-hour fitness center, a clubhouse, a business center with free Wi-Fi, a car care center and laundry facilities.

The company will implement a $1.8 million interior, exterior and amenity renovation program. The acquisition is projected to yield a pro-forma stabilized cap rate of six percent after the implementation of the value-add program. Bluerock purchased the property with an equity investment of $17.4 million, utilizing $21.2 million (58 percent LTV) of the REIT’s line of credit to finance the remainder.

Image courtesy of Yardi Matrix