Bluerock Residential Growth REIT Inc has acquired Birmingham, Alabama-based Springs at Greystone, a 300-unit multifamily community. The purchase price was about $36.25 million or approximately $121,000 per residential unit.
NEW YORK, Oct. 27, 2017 /PRNewswire/ — Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) (“BRG,” “the REIT” or “the Company”) announced today that it has acquired the 300-unit multifamily community known as Springs at Greystone in Birmingham, Alabama (“Springs at Greystone”). The REIT acquired the property for a total purchase price of approximately $36.25 million, or approximately $121,000 per residential unit.
The Company plans to implement a $1.8 million interior, exterior and amenity renovation program to improve the property’s curb appeal and strengthen its position among its competitive set. The acquisition is projected to yield a pro-forma stabilized cap rate of 6.3% after implementation of the value-add program.
BRG purchased the property with an equity investment of $17.4 million, utilizing $21.2 million (58% LTV) of the REIT’s line of credit to finance the remainder.
Springs at Greystone is a 2007 vintage, garden-style apartment community in the East Birmingham submarket of Birmingham, Alabama. The property is situated in the top-tier suburban district of Greystone, and located within the active “280 Corridor” commercial hub, which is less than a mile from US-280. Springs at Greystone features studio, one-, two- and three-bedroom units averaging 905 square feet, a resort-style pool with outdoor kitchen, 24-hour fitness center, clubhouse, business center with Wi-Fi, car care center and laundry facilities.
The Greystone submarket has attracted a strong influx of residents drawn to its upscale lifestyle, amenities and proximity to jobs. Home values in the area range from $400,000 to over $1 million. The nearby 280 Corridor is a dense, regional employment and retail hub, with three million square feet of office space and more than 2.6 million square feet of retail space.
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.