Bluerock Residential Growth REIT, Inc., has acquired the 301-unit, Class-A multifamily Wesley Village Apartments in Charlotte, North Carolina. The REIT acquired the property for a total purchase price of approximately $56.85 million, or roughly $189,000 per residential unit.
The company will implement a $2 million renovation program to upgrade units and common spaces, and projects the acquisition will yield a pro-forma stabilized cap rate of 6%.
BRG purchased the property with an investment of $16.5 million, financing the remainder with a fixed rate loan of $40.5 million from Freddie Mac.
Wesley Village is in the heart of a vibrant urban submarket but offers residents the ample floorplans and surface parking typical of residences found in lower density, suburban locations. Built in 2010, the property features studio, one- two- and three-bedroom units averaging a generous 1,025 square feet, a resort-style saltwater pool with grilling area and wet bar, fitness center, game room with billiards table, business center with Wi-Fi, and a dog park.
The property is situated just one mile from the thriving Uptown CBD, fewer than seven miles from the Charlotte airport and directly within the expanding and sought-after FreeMoreWest submarket. FreeMoreWest has sustained a robust population growth of more than 10% since 2010, while the greater Charlotte metro area, fueled by an influx of new firms to the area, has added more than 30,000 jobs over the past year.
"The Wesley Village Apartments property is squarely in the path of growth for Bluerock. We were able to purchase the property at a very favorable cost basis and, with implementation of value-added improvements and management efficiencies, we are confident that Wesley Village will be a strong performer for the REIT as well as a highly-competitive player in its market," said Ramin Kamfar, Chairman and CEO of BRG.