Oct. 24, 2017 – Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) (“BRG”, the “REIT” or the “Company”) announced today that it has acquired the 336-unit multifamily community Citrus Tower (“Citrus Tower”) in Clermont, Florida. The REIT acquired the property for a total purchase price of approximately $55.25 million, or roughly $164,435 per residential unit.
The transaction was financed with a senior loan in the amount of approximately $41.4 million at an interest rate of 4.07%. The acquisition is projected to yield a pro-forma stabilized cap rate of approximately 6.5%.
Citrus Tower, which was built in 2006, features one-, two- and three-bedroom units averaging nearly 1,099 square feet. The property features a resort style swimming pool with summer kitchen and fire pit, a fitness center, an outdoor volleyball court and tennis court, an outdoor playground and a dog park. It has undergone $1.15 million in amenity upgrades including new exterior paint and lighting, landscape improvements, pool resurfacing, and upgrades to the dog park.
The property is in Clermont, Florida, a high-growth suburb of Orlando characterized by strong demographics and minimal new supply. The Orlando market, currently ranked third in the nation for job growth, is projected to add 160,065 new jobs through 2021, while significant job growth in the leisure/hospitality and professional/business sectors over the past year has already begun to generate robust apartment demand. Submarket demographics are above those of the Orlando MSA in terms of median household income and population growth. The property is located just off Clermont’s major thoroughfare, FL-50.