BRG Pays $45M for Upscale Apartment Community in Charlotte
- Aug 21, 2015
Bluerock Residential Growth REIT Inc. acquired 322-unit Class A apartment community in Charlotte located on 10320 Grobie Way for nearly $45 million, or approximately $139,000 per unit.
Ashton Reserve Apartments is a Northlake-based upscale community in the first phase of a two-phase acquisition. The second phase, for the acquisition of Ashton Reserve II, is slated for early next quarter and will add an additional 151 units. BRG made an equity investment of approximately $13 million to acquire Ashton Reserve I, and assumed the existing $31.9 million mortgage loan.
“This transaction has benefitted tremendously from BRG’s deal sourcing capability as well as our ability to execute complex transactions quickly,” mentioned Ramin Kamfar, chairman and CEO of BRG. “Ashton Reserve I is an upscale and very marketable asset, and we are pleased to be able to add it to our portfolio at a favorable cost basis.
Ashton Reserve Apartments are conveniently located near Interstates 77, 485 and 85, commuting to Uptown Charlotte, Lake Norman, UNC Charlotte, Charlotte-Douglas International Airport. State-of-the-art fitness center, car care center, valet dry cleaning services, business center, swimming pool with oversized deck, recycling centers or private media center are amenities provided by the upscale community.
Featuring high-end one-, two- and three-bedroom apartments, the rents in this community range between $963 and $1876, whereas sizes start at 764 square feet and reach 1541 square feet. Units feature nine foot ceilings, walk-in closets, custom cabinetry with wine racks, ceiling fans and overhead bedroom lightning, as well as private terrace with enclosed storage in select units.
Ashton Reserve I and II are off-market transactions sourced directly with the seller. BRG purchased Ashton Reserve I at a favorable nominal cap rate of 6.0% as compared to local market cap rates of approximately 5.0%. Ashton Reserve II is expected to be acquired at a cap rate of approximately 5.8%.
Image courtesy of Ashton Reserve Apartments