Big Creek
This is a sample of a Delaware Statutory Trust offering. DSTs are illiquid private placements offered under Reg D to accredited investors only. The figures below are sourced from the sponsor's Private Placement Memorandum. Year-one cash-flow, cap-rate, and DSCR figures are projections, not guarantees. Loss of principal is possible.
About this offering
Bluerock Big Creek is an investment in a Class A apartment complex located in Alpharetta, Georgia. Alpharetta is an affluent neighborhood just north of Atlanta. The property has a total of 372 units and includes resort style amenities.
Key metrics
- Year 1 Cash Flow
- 5.38%
- Year 1 Cap Rate
- 4.91%
- Investor Purchase Price
- $84.46M
- Offering Size
- $35.59M
- Year 1 DSCR
- 1.98
- Hold Period DSCR
- 2.02
Debt structure
- Loan Amount
- $48.87M
- Lender
- KeyBank National Association
- Program
- Fannie Mae DUS
- Interest Rate
- 4.14%
- LTV
- 57.87%
- Term
- 7 years
- Interest Only
- 5 years
- Amortization
- 30 years
Specifications
- Units
- 372
- Occupancy
- 84.00%
- Strategy
- Newer built property which limits capital expenditures; affluent area allows property manager to charge a premium on rents.
Market analysis
- New Supply
- Submarket physical occupancy at 92%; sponsor projecting 93% economic occupancy during hold
Principal risks
- R01Bluerock is projecting economic occupancy at 93% during the hold period. This is aggressive as the submarket physical occupancy is only 92%.
- R02The cap rate to investors is low (4.91%).
- R03The property is currently occupied at only 84%. This is concerning as the sponsor projects occupancy of 93% during the hold term and this may affect distribution to investors as they need time to lease up to projected levels.
- R04The underwriting assumptions of the sponsor for the hold term are aggressive. They project 5% rental income growth in year 2 of the investment, which may be hard to attain if the property is still experiencing lower than projected occupancy.
Property imagery
Bluerock
According to the sponsor's website: "Bluerock is a national real estate investment firm headquartered in Manhattan with regional offices in Southfield, Michigan, Boise, Idaho and Newport Beach, California. Bluerock is a leading private equity real estate asset manager with a focus on Core-Plus, Value-Add, Opportunistic and Development investment strategies, and has transacted over 9 million square feet of residential and commercial real estate acquisitions since its inception in 2002. Bluerock's key principals have an average of 25 years investing experience, have been involved with acquiring over 30 million square feet of real estate with approximately $10 billion in value, and have helped launch leading real estate private and public company platforms."
Request the full offering package for Big Creek
Private Placement Memorandum and sponsor materials available to accredited investors only.