REIT Nabs $57M NC Community

Bluerock Residential Growth REIT acquired Wesley Village, a 301-unit property in Charlotte that the company plans to upgrade. The transaction was made possible through the assumption of a $41 million Freddie Mac loan.

Bluerock Residential Growth REIT Inc. recently purchased Wesley Village Apartments, a 301-unit, Class A community in Charlotte, N.C. The REIT acquired the property for $57 million, or roughly $189,000 per unit. BRG invested approximately $17 million in the property, while the remainder was financed using a fixed rate loan of $41 million from Freddie Mac. The company plans to spend another $2 million on upgrading units and common spaces. BRG projects that the acquisition will yield a pro-forma stabilized cap rate of 6 percent. The property last sold in 2012, when Legacy Partners paid Wood Partners $46 million for Wesley Village.

Located at 2715 Wet Stone Way, within the FreeMoreWest submarket and in the Wesley Heights neighborhood, the property is minutes from the junction between I-77 and I-277, less than 5 minutes from Uptown CBD and almost 6 miles away from Charlotte Douglas Airport. According to Yardi Matrix data, the community includes 142 one-, 144 two- and 15 three-bedroom units that range between 566 and 1,454 square feet. The nine-building property includes a 24/7 fitness center, business center with Wi-Fi, 10,000-square-foot clubhouse, saltwater swimming pool, an outdoor fireplace for gathering, community garden, pet park and 483 parking spaces.

“The Wesley Village Apartments property is squarely in the path of growth for Bluerock. We were able to purchase the property at a very favorable cost basis and, with implementation of value-added improvements and management efficiencies, we are confident that Wesley Village will be a strong performer for the REIT as well as a highly-competitive player in its market,” Bluerock Residential Growth Chairman & CEO Ramin Kamfar said.

At the end of last year, the REIT also purchased 320-unit City Walk Apartments in Roswell, Ga., for $76 million.

Images courtesy of Wesley Village Apartments website