Source: Bluerock Residential / #Apartments #Multifamily
NASHVILLE, TN - Bluerock Residential Growth REIT announced that it has entered into a contract to sell its recently constructed 23Hundred@Berry Hill multifamily development in Nashville for $61.2 million, representing an Internal Rate of Return of approximately 60% and a 2.8x equity multiple. The Company plans to recycle and re-invest its proceeds at higher cap rates to drive Adjusted Funds from Operation and NAV on behalf of shareholders.
“23Hundred@Berry Hill has been a tremendous story for BRG and is attributable directly to our local intellectual capital. We were early movers as we were able to see the strong growth potential in Nashville’s emerging Berry Hill/Melrose district. We acquired a commercial lot, rezoned it to develop a Class A multifamily community and leased the project up well above our pro forma in terms of both rents and velocity,” said Ramin Kamfar, Chairman and CEO of BRG.
To complete 23Hundred@Berry Hill, the team implemented its BR Lifestyle Initiatives program, customizing properties with design features and amenities targeted specifically to local market demographics. In this case BRG, along with its development partner, Stonehenge Real Estate Group, delivered a project that spoke to Nashville’s music-industry demographic, with features that included a songwriter’s lounge; a rooftop lounge with billiards, bars and televisions; a saltwater pool; an outdoor grill area with fire pit and cabanas; and a state-of-the-art fitness club.
BRG expects to receive approximately $7.0 million of net sales proceeds for its ownership interest in the project.