CHARLOTTE, NC - Bluerock Residential Growth REIT announced that it has acquired through a joint venture a newly-constructed, class AA apartment community in Charlotte, North Carolina known as the Park & Kingston Apartments.
The purchase price for the property's 168 units is $30.7 million, or $183,000 per unit. This compares favorably to market pricing for similar projects in the $210,000 – $240,000 per unit range. On March 16, 2015, all of the property's existing 153 units, which were completed in 2014, were acquired, with the remaining 15 units to be acquired once they are delivered by the developer, likely in the fourth quarter of this year. The purchase of the initial 153 units, at $27.85 million, was partially funded with $13.3 million of equity of which BRG contributed $6.3 million, and with proceeds of a 5-year, full term interest only loan from Fannie Mae in the amount of $15.25 million with a fixed rate of 3.21%.
Park & Kingston is among Charlotte's premier, luxury multifamily communities, and is situated in a coveted location at the true center of the vibrant South End, with immediate access to both the Bland Station and East/West Boulevard Light Rail Platform. The property is in close proximity to amenities and upscale shopping, including a soon-to-be developed 47,000 square foot Whole Foods. It is also located less than two miles from the region's largest employment hub, the Charlotte Central Business District, where Bank of America, Wells Fargo, Chiquita, Duke Energy and others maintain sizable operations, supporting more than 100,000 jobs.
"Park & Kingston is one of the highest-quality, most well-located and well-constructed multifamily communities in a premier submarket, and we believe it to be a strong investment for the Company's portfolio. The quality of this project, as well as its excellent location, present a strong opportunity for rent growth going forward," said Ramin Kamfar, Chairman and CEO of BRG.
Comprised of luxury studio and one-bedroom apartments, Park & Kingston offers highly desirable floor plans. Interiors feature luxury finishes, private balconies and a superior community amenity package including a rooftop terrace with uptown skyline views, internet cafes, coffee bars, elaborately landscaped private courtyards, pool and sundeck, outdoor fireplaces, dining and grilling stations, controlled access covered parking and a fully-equipped fitness studio.
The Company filed a Current Report on Form 8-K with respect to this investment on March 20, 2015 with the Securities and Exchange Commission, which describes the details of the joint venture, which is wholly owned by BRG and its affiliates.