CHARLOTTE, NC - Bluerock Residential Growth REIT announced that it has acquired 322 units within a Class A apartment community in Charlotte, NC known as the Ashton Reserve Apartments. The acquisition is the first phase of a two-phase acquisition that BRG will make in the community. The second phase, for the acquisition of Ashton Reserve II, is slated for early next quarter and will add an additional 151 units.
BRG acquired Ashton Reserve I for $44.75 million, or approximately $139,000 per unit. The Company made an equity investment of approximately $13 million to acquire Ashton Reserve I, and assumed the existing $31.9 million mortgage loan.
Ashton Reserve I and II are off-market transactions sourced directly with the seller. BRG was able to move quickly to structure and execute the complex two-part transaction, wherein Ashton Reserve I was already operating and carrying pre-existing mortgage debt while Ashton Reserve II was still under development. This enabled BRG to acquire Ashton Reserve I at a favorable nominal cap rate of 6.0% as compared to local market cap rates of approximately 5.0%. BRG expects to acquire Ashton Reserve II at a cap rate of approximately 5.8%.
Built in two stages in 2013 and 2015, the Ashton Reserve Apartments feature high-end one-, two- and three-bedroom layouts, offering some of the most desirable in-unit features available in Charlotte's Northlake submarket. All units feature nine foot ceilings with a stainless steel appliance package that includes a full-sized refrigerator, granite countertops, undermount sinks, and full size washer/dryers. Community amenities include lush landscaping, two clubhouses, fitness facilities, a swimming pool with oversized deck and grilling stations, as well as a business center and a private media center.
The Charlotte, NC market is currently reporting strong population growth among the rental-oriented 20-year-old to 34-year-old demographic, and BRG management believes that Ashton Reserve is well situated to take advantage of that growth. The Northlake submarket in which the property is located is approximately eight miles from Uptown Charlotte and is anchored by the one million square foot Northlake Mall, a premier retail destination for the affluent communities in the North Charlotte metropolitan area. Ashton Reserve is in close proximity to Lake Norman as well as to regional employers, major travel routes and the Charlotte-Douglas International Airport.
"This transaction has benefitted tremendously from BRG's deal sourcing capability as well as our ability to execute complex transactions quickly," said Ramin Kamfar, Chairman and CEO of BRG. "Ashton Reserve I is an upscale and very marketable asset, and we are pleased to be able to add it to our portfolio at a favorable cost basis."
Source: Bluerock Residential / #Apartments #Multifamily