Bluerock Residential and Trammell Crow to Develop 269-Unit Multifamily Community in Houston

Bluerock Residential and Trammell Crow to Develop 269-Unit Multifamily Community in Houston

HOUSTON, TX - Bluerock Residential Growth REIT announced that it has entered into a joint venture with Trammell Crow Residential (TCR) to develop a 269-unit, Class A apartment community known as Alexan Blaire House, utilizing BRG’s ‘Invest-to-Own’ convertible preferred equity structure. Located on approximately 4.2 acres, the development will be situated two miles from Texas Medical Center in Houston.

The largest medical complex in the world, Texas Medical Center encompasses 21 hospitals, multiple medical and nursing schools and more than 106,000 employees, and is expanding from its current 46 million square feet to 59 million square feet.

BRG’s underwriting projects a trended return on cost for the project ranging from 7.0% to 7.5% at stabilization, for value creation of 200 to 250 basis points versus sales of comparable multifamily communities in the greater Houston area at 4.75% - 5.00%, the Company said.

BRG and affiliates of Bluerock Real Estate LLC (“Bluerock”) will contribute approximately 90% of the equity required for the development, and TCR will contribute the balance of the required equity. BRG’s investment, which will comprise approximately 90% of the total BRG and Bluerock investment, will initially be structured as a preferred equity investment with a 15% annual current return. Once the project is developed and 70% leased, BRG will have a right to convert its preferred equity investment into a controlling common interest in the controlling member of the joint venture.

“TCR, with whom we partnered on our recent Alexan CityCentre development project, is a nationally prominent developer with deep roots in Houston. With its tremendous local knowledge and development expertise, we expect that our partnership will deliver measurable value, both strategic and operational, on behalf of our investors. We are extremely pleased to be able to work with TCR to bring another prestigious project to market,” said Ramin Kamfar, Chairman and CEO of BRG.

Alexan Blaire House will be situated within Houston’s Inner Loop in the City of Southside Place, an exclusive 128-acre municipality comprised of high end residential and retail which also offers residents premier recreational areas and public schools. In addition to proximity to the Texas Medical Center, the site is within a three mile commute to the largest employment nodes in the Houston MSA, including the 4.25 million square feet mixed-use Greenway Plaza; the Galleria/Uptown business district, which houses more than 2,000 companies; and the expanding Central Business District which is currently home to 12 Fortune 500 companies.

To attract the area’s high income demographic ($187,000 estimated average household income within a one-mile radius) the joint venture will incorporate best-in-class interior finishes and will offer a higher than average proportion of two bedroom units which, in light of limited supply, are expected to command higher rents per square foot. Average unit size for the development is a sizable 894 square feet. In addition to the space, superior finishes and premium appliances, the complex will feature high-quality community amenities such as a resort quality pool, state of the art fitness facility, concierge, and business center.

Source: Bluerock Residential / #Apartments #Multifamily

More Stories

Get The Newsletter

Get The Newsletter

The latest multifamily industry news delivered to your inbox.