BR Beach House
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 Beach House is an investment into a Class A multifamily apartment complex located in Jacksonville, Florida. The property has a total of 228 units and has resort style amenities. The property is located in a favorable area with retail and businesses nearby.
Key metrics
- Year 1 Cash Flow
- 5.75%
- Year 1 Cap Rate
- 4.98%
- Investor Purchase Price
- $51.58M
- Offering Size
- $21.34M
- Year 1 DSCR
- 2.12
- Hold Period DSCR
- 2.06
Debt structure
- Loan Amount
- $30.23M
- Lender
- KeyBank National Association
- Program
- Fannie Mae DUS
- Interest Rate
- 3.91%
- LTV
- 58.62%
- Term
- 10 years
- Interest Only
- 5 years
- Amortization
- 30 years
Specifications
- Units
- 228
- Occupancy
- 94.00%
Market analysis
- New Supply
- Local area does not have any developments currently under construction; area appears to be infill
Principal risks
- R01The sponsor has projected their economic occupancy at 92.6% during the hold term, which does not allow for much cushion should there be an economic downturn.
- R02The sponsor is also growing their Effective Gross Revenue at a rate above the projected Operating Expense growth.
- R03The property is already occupied higher than stabilized values which limits the potential for growth in occupancy and value increase at the property.
- R04The cap rate to investors is low (4.98%) and it is lower than comparable properties in the local market that average (5.17%).
- R05The property is being purchased for a price of $220K per door which is higher than average investment cost
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 BR Beach House
Private Placement Memorandum and sponsor materials available to accredited investors only.