TAMPA, FL - Bluerock Residential Growth REIT announced that its Board of Directors has approved the acquisition of a majority joint venture interest in Lansbrook Village, a Class A apartment community located in the Tampa, Florida suburb of Palm Harbor, with an equity investment of approximately $14.2 million.
The joint venture in which the Company intends to invest has acquired 573 units out of a 774-unit condominium community. The units to be acquired are currently 94% leased and operated as a rental community.
Lansbrook Village offers a rich amenity package including two clubhouses, three swimming pools, a state-of-the-art fitness center, lighted tennis courts, a sand volleyball court, picnic areas with grills, a pet playground, and interactive fountains. Surrounded by protected environmental areas in Palm Harbor, Lansbrook Village is located in one of the most affluent areas of the Tampa area.
Bluerock Residential Growth REIT believes that its purchase of Lansbrook as a ‘fractured condominium’ community is at a significant discount to replacement cost and to comparable apartment properties, providing it with potential to create significant value growth over time. The Company believes there may be additional potential for generating economies of scale and value creation through the purchase of additional condominium units from current owners. Additionally, the Company believes that there is significant potential for value creation by driving rental revenues and reducing turnover and expenses through the implementation of its real-estate centric strategies, including its unit and amenity upgrade programs and lifestyle initiatives.
“Lansbrook Village is currently an in-demand rental community with very low vacancy and a strong income stream, but there is opportunity to improve the community’s value with additional property enhancements and implementation of cost efficiencies in several areas” says Mr. Kamfar. Planned improvements include upgrades to landscaping, additional dog park amenities, new signage, and further upgrades to social center, outdoor kitchens, and clubhouse.
The Company intends to joint venture on this investment with Atlanta-based Carroll Organization. Founded in 2004, Carroll Organization is an established owner and operator of high-quality multifamily real estate, dedicated to acquiring, improving, and operating well-located multifamily real estate assets in high-growth markets. The organization’s property management division currently has responsibility for a portfolio of approximately 14,000 units. Carroll Organization will manage the pool of 573 units owned by the joint venture and will work closely with HOA management on planned improvements.
The terms of the purchase agreement for the Company’s investment in Lansbrook Village are still subject to negotiation, and the investment may not be completed as the Company intends.