ROSWELL, GA - Bluerock Residential Growth REIT announced that it has acquired the 320-unit, Class A+ multifamily City Walk Apartments in Roswell, Georgia. The Company acquired the property through a joint venture for a total purchase price of approximately $76.0 million, or roughly $237,000 per residential unit.
The acquisition is projected to yield a pro forma stabilized cap rate of approximately 5.75%. This compares favorably to estimated market cap rates of 4.75% – 5.25% for comparable assets.
BRG invested 98% of the venture's equity requirement, or approximately $25.48 million, with an affiliate of the Carroll Organization investing the balance for a 2% stake in the venture. The transaction was further capitalized with a senior loan in the amount of approximately $51 million.
The property, which was built in 2015, features one- and two-bedroom units averaging nearly 900 square feet. Situated on nearly 11 acres, the property offers a large clubhouse and community amenities including a resort-style pool with tanning ledges, grilling area, covered outdoor seating, fitness center, club room complete with kitchen and billiards table, business center with Wi-Fi, and a newly constructed dog park.
City Walk is the only institutional multifamily asset built in Roswell in the last 15 years and benefits from its location in a historic district with high barriers to entry for additional new multifamily construction. It is strategically located within walking distance of the area's vibrant downtown Historic Canton Street retail shopping and dining. The Company plans to improve cash flow at the property through enhanced property management and modest, value-add renovations to unit interiors.
"We are pleased to have been able to source this property by leveraging our relationships in the local market. City Walk is a strong performer in a supply-constrained submarket. We believe it will be a solid, steady contributor to the BRG portfolio now and well into the future," said Ramin Kamfar, Chairman and CEO of BRG.
Source: Bluerock Residential / #Apartments #Multifamily