Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) announced today that it has acquired the 336-unit multifamily community 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.
About Bluerock Residential Growth REIT, Inc.
Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) is a real estate investment trust that focuses on acquiring a diversified portfolio of Class A institutional-quality apartment properties in demographically attractive growth markets to appeal to the renter by choice. The Company's objective is to generate value through off-market/relationship-based transactions and, at the asset level, through improvements to operations and properties. BRG generally invests with strategic regional partners, including some of the best-regarded, private owner-operators in the United States, making it possible to operate as a local sharpshooter in each of its markets while enhancing off-market sourcing capabilities. The Company is included in the Russell 2000 and Russell 3000 Indexes. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes. For more information, please visit our website at: www.bluerockresidential.com.