Bluerock Announces Successful Full Cycling of a 1031 DST Program Within Three and a Half Years of Acquisition
New York, NY (August 6, 2019) – Bluerock Value Exchange (BVEX) announced the successful sale of the Landings at Four Corners, a 270-unit apartment community located in Davenport, FL (Orlando Metro). Bluerock acquired the investment property for approximately $39 million in February 2016 and successfully sold the property for approximately $51.3 million in July 2019 resulting in a 166% total return on equity investment, or a 19.2% average annual return; all achieved in approximately three and half years.
The property was acquired by BR Four Corners Orlando, DST, a Delaware Statuary Trust (DST) structured for 1031 like-kind exchanges for accredited investors. The full-cycle event included an equity return of approximately $23.8 million on an $16.6 million investment; or a 143% return. This appreciation does not include the payment of consistent 5.5% – 7.5% of monthly distributions totaling approximately $3.7 million, enhancing the total return to 166%. Notably, due to the value creation and operating successes of our asset management team, the DST was able to pay substantially enhanced cash distributions from the original projections in each year as a result of receiving payments of Supplemental Rent under the master lease.
This sale marks the third successful full-cycle DST property disposition by BVEX in 2019. In the aggregate, BVEX sold three properties for aggregate net proceeds of $124 million as compared to total investor purchase price of $87.5 million; resulting in net gain on sale to Investors, after deducting sale expenses and full repayment of debt of approximately $36.5 million, and inclusive of monthly distributions, net total returns of approximately $48 million.
“The sale of Four Corners Orlando represents excellent investment foresight by our real estate team taking advantage of the booming apartment market within the Orlando Metro”, said Josh Hoffman, President of BVEX. “We acquired the property at a very favorable price point per unit, sustained high occupancy levels which allowed us to significantly grow rents and increase the property’s net operating income by over 26% resulting in substantial appreciation for our Investors. The result was generating opportunistic high teens levels of annualized returns for our investors in a core stabilized asset in three and a half short years,” added Hoffman.
The Landings at Four Corners is a Class A, garden-style apartment community consisting of 270 units located in Davenport (Orlando metro), Florida. The Property, built in 2009, is uniquely situated near Disney World Resort in Orlando, near the intersection of U.S. Highway 27 and U.S. Highway 192 in southwest Orlando with abundant retail shopping services located less than one mile from the Property. The Property also offers easy access to several of the region’s employment centers including Walt Disney World (the nation’s largest single site employer), cultural attractions, and recreational amenities.
About Bluerock Value Exchange
Bluerock Value Exchange (BVEX) is a leading, national sponsor of Premier Exchange Properties™ and syndicated 1031 Exchange offerings with a focus on Class A properties that can deliver stable cash flows and with high potential for value creation. BVEX’s structured 1031 Exchanges programs include nearly $1.4 billion in total property value and approximately 8.6 million square feet of property. With capacity across nearly all real estate sectors and the ability to customize transactions for individual investors, BVEX is available to create programs to accommodate a wide range of tax requirements. To learn more, please visit Bluerock Value Exchange website at bluerockexchange.com.