ORLANDO, FL - Bluerock Residential Growth REIT, Inc. announced it has made a preferred equity investment in a 296-Unit Class A apartment community in Orlando, Florida. The project, located in close proximity to the University of Central Florida and Central Florida Research Park, will be a featured component of a master-planned, Publix-anchored retail development known as Town Park. The estimated cost to complete the development is $37 million.
BRG expects to invest up to $4 million of preferred equity with the ability to convert into a common equity position following stabilization of the development. Catalyst Development Partners, the developer, will contribute approximately 15% of the required equity. Affiliates of Bluerock Real Estate, LLC control the remaining equity in the development.
By converting land designated for office use to residential use, Bluerock was able to achieve a below market land basis for the project, allowing a $10,000 - $15,000 per unit cost advantage, said Ramin Kamfar, Chairman and CEO of BRG.
The development will feature upscale one- and two-bedroom units. Intended to attract the area’s young and upwardly mobile residents, plans include a trendier, upscale, “e-urban” design with a slightly higher density than traditional garden-style communities. Unit sizes are comfortable, averaging 1,118 square feet for a two bedroom and 722 square feet for a one bedroom. The amenity base, common areas and interior finishes are designed to be of superior quality for market, providing a high-end alternative to competing commodity garden-style product.
The development is located directly adjacent to the Central Florida Research Park (120 companies, 10,000 employees), one mile north of the Waterford Lakes Town Center retail development (Simon Properties, 1 million square feet), and three miles south of the University of Central Florida (60,000 students and 10,000 employees) and the Quadrangle Office Park (1.7 million square feet and 5,000 employees).
Despite having an urban feel, the community will be surfaced parked, which is a significant and desired amenity, the Company said.