PORT ST. LUCIE, FL - Bluerock Residential Growth REIT announced that it has acquired the 320-unit, multifamily Apex Prima Vista Apartments in Port St. Lucie, FL. The Company acquired the property through a joint venture for a total purchase price of approximately $38.3 million, or approximately $120,000 per unit.
BRG invested 85% of the venture's equity requirement, or approximately $11.3 million, with an affiliate of the Carroll Organization investing the balance for a 15% stake in the venture. The transaction was further capitalized with a senior loan in the amount of approximately $27 million.
The acquisition is projected to yield a stabilized pro forma cap rate of approximately 7.3% on execution of the Company's Value-Add upgrade strategy. This compares favorably to estimated market cap rates of 5.0% – 5.5% for comparable assets.
Apex, which was built in 2003, features one-, two- and three-bedroom units averaging nearly 1,050 square feet. The property also features community amenities including a clubhouse, two large central lakes, two pools, recreation courts, a fitness center and a playground.
The property is located a half mile from Federal Highway/US-1, which provides access to major employment hubs. It is located within 20 minutes of The Torrey Pines Institute for Molecular Studies, The Tradition Center for Innovation and Treasure Coast Research Park, which have emerged as strong centers of science and technology employment within South Florida.
The Port St. Lucie market, which has had very limited new multifamily development in recent decades, is now reporting robust population growth. The city, which has nearly doubled in size since 2000, is now the eighth largest in Florida, surpassing Ft. Lauderdale, and is ranked among the fastest growing U.S. metropolitan areas for employment growth in the coming five years. Approximately 17,000 new jobs are forecasted in the MSA over the next five years.
"Apex presents a clear value-add opportunity in a growing market with constrained supply. The property is generating solid in-place cash flows today, and the rapid expansion of the Port St. Lucie MSA signals room for ample rent growth. Our ability to source Apex at a favorable cost basis makes it possible us to improve the property and meet the needs of the market's expanding new employment base," said Ramin Kamfar, Chairman and CEO of BRG.