Bluerock Residential Growth REIT (BRG) has made a preferred equity investment in a 296-unit Class A apartment community in Orlando, Florida.
The project, located in close proximity to the University of Central Florida and Central Florida Research Park, will be a featured component of a master-planned, Publix-anchored retail development known as Town Park.
The estimated cost to complete the development is USD37 million.
BRG expects to invest up to USD4 million of preferred equity with the ability to convert into a common equity position following stabilisation of the development. Catalyst Development Partners, the developer, will contribute approximately 15 per cent of the required equity. Affiliates of Bluerock Real Estate control the remaining equity in the development.
“By converting land designated for office use to residential use, Bluerock was able to achieve a below market land basis for the project, allowing a USD10,000-USD15,000 per unit cost advantage,” says Ramin Kamfar, chairman and CEO of BRG.
The development will feature upscale one- and two-bedroom units. Intended to attract the area’s young and upwardly mobile residents, plans include a trendier, upscale, “e-urban” design with a slightly higher density than traditional garden-style communities. Units average 1,118 square feet for a two bedroom and 722 square feet for a one bedroom.