ORLANDO, FL - Bluerock Residential Growth REIT announced that it has acquired a 306-unit Class A apartment community in the South Orlando submarket, currently known as the Venue Apartments and to be rebranded as ARIUM Grande Lakes.
The asset was acquired for $43.3 million, a considerable discount from its 2006 sale price of $49.1 million. With a pro forma cap rate of 6%, the property was acquired on attractive terms given local market cap rates of 5.25% - 5.50%. BRG projects first year AFFO yield of approximately 12%, based on trailing operations.
The purchase was capitalized with a senior mortgage from Fannie Mae and approximately $14.4 million of equity from BRG. BRG’s joint venture partner in the transaction, the Carroll Organization, contributed 5% of the equity.
“We believe this is an excellent core plus investment with an opportunity to grow cash flow through enhanced property management and a modest value-add renovation to the unit interiors”, notes Ramin Kamfar, Chairman and CEO of BRG.
The property includes lavish amenities such as a sand volleyball court, a 24 hour fitness center, a car care area, a resident business center, a barbecue pavilion with grills, limited access gated entry, and detached garages and storage rooms. The beautifully appointed one, two, and three bedroom units range from 788 to 877 square feet and offer walk-in closets, full appliance packages, designer light fixtures, luxurious garden bathtubs, autumn stained cabinetry, and washers and dryers in every unit.
The property is located approximately 10 miles south of downtown Orlando, at the heart of the area's main attractions, including Walt Disney World, Sea World, Universal Studios, and the Orange County Convention & Civic Center, and ¼ mile east of 1,100 room J.W. Marriott and Ritz Carlton at Grande Lakes Resort, a mixed-use luxury development with hotels, a Greg Norman signature golf course, swimming pool complexes, child care, an outdoor playground, and retail shops.