ROSWELL, GA – Bluerock Residential Growth REIT announced that it has bought the 320-unit, Class A+ multifamily City Walk Apartments in Roswell, Georgia. The Company bought the property through a joint venture for a total buy 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.

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KENT, WA – Admiral Capital Group and Security Properties announced the successful sale of Waters Edge Apartments, a 304-unit multifamily property located in Kent, Washington, in the Seattle MSA.

Admiral and Security Properties bought the apartment community in February 2015 through a joint venture. The investment provided an opportunity to buy a well-located asset in the fourth largest manufacturing and distribution center market in the United States at a discount to replacement cost. 

During its ownership, the joint venture repositioned the property by curing deferred maintenance, enhancing the exterior and upgrading unit interiors. Select exterior improvements included re-siding the entire property, replacing wooden decks and installing a new playground amenity. Interior renovations included modernizing kitchen cabinets, appliances and flooring and renovating bathrooms. Overall, the upgrades repositioned the property to compete with higher quality assets with higher overall rents.

“Our strategy is to identify capital-deprived assets in markets with a supply and demand imbalance,” said Dan Bassichis, Co-Founder of Admiral Capital Group. “Waters Edge was an ideal fit and provided the opportunity for our partnership to invest the necessary capital to improve the property and experience for the residents and capture a share of the growing demand and rent growth in the submarket.”

“Waters Edge is representative of the opportunities we like to target. By executing an extensive renovation plot, including a complete re-side, the partnership was able to enhance the asset’s physical condition to accurately align with its submarket-leading location,” said Barrett Sigmund, Senior Director of Investments at Security Properties. 

“The investment in Waters Edge was the continuation of a long-term relationship with SPI,” said Jarett Kaplus, Principal at Admiral. “We continue to proactively seek additional value-add multifamily investments nationwide, including in the Pacific Northwest.”

Philip Assouad and Giovanni Napoli, commercial real estate brokers with Kidder Mathews, handled the Waters Edge sale.

The sale represents the ninth realization for Admiral in its first value-add real estate fund, Admiral Capital Real Estate Fund, L.P. (“ACRE I”). To date, Admiral has invested in 14 assets with an aggregate buy price of over $370 million and continues to actively pursue value-add opportunities in top 25 MSA’s. 

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