New Yrok, New York (PRWEB) January 13, 2015
The largest medical complex in the world, Texas Medical Center encompasses 21 hospitals, multiple medical and nursing schools and more than 106,000 employees, and is expanding from its current 46 million square feet to 59 million square feet.
BRG’s underwriting projects a trended return on cost for the project ranging from 7.0% to 7.5% at stabilization, for value creation of 200 to 250 basis points versus sales of comparable multifamily communities in the greater Houston area at 4.75% - 5.00%, the Company said.
BRG and affiliates of Bluerock Real Estate LLC (“Bluerock”) will contribute approximately 90% of the equity required for the development, and TCR will contribute the balance of the required equity. BRG’s investment, which will comprise approximately 90% of the total BRG and Bluerock investment, will initially be structured as a preferred equity investment with a 15% annual current return. Once the project is developed and 70% leased, BRG will have a right to convert its preferred equity investment into a controlling common interest in the controlling member of the joint venture.
“TCR, with whom we partnered on our recent Alexan CityCentre development project, is a nationally prominent developer with deep roots in Houston. With its tremendous local knowledge and development expertise, we expect that our partnership will deliver measurable value, both strategic and operational, on behalf of our investors. We are extremely pleased to be able to work with TCR to bring another prestigious project to market,” said Ramin Kamfar, Chairman and CEO of BRG.
Alexan Blaire House will be situated within Houston’s Inner Loop in the City of Southside Place, an exclusive 128-acre municipality comprised of high end residential and retail which also offers residents premier recreational areas and public schools. In addition to proximity to the Texas Medical Center, the site is within a three mile commute to the largest employment nodes in the Houston MSA, including the 4.25 million square feet mixed-use Greenway Plaza; the Galleria/Uptown business district, which houses more than 2,000 companies; and the expanding Central Business District which is currently home to 12 Fortune 500 companies.
To attract the area’s high income demographic ($187,000 estimated average household income within a one-mile radius) the joint venture will incorporate best-in-class interior finishes and will offer a higher than average proportion of two bedroom units which, in light of limited supply, are expected to command higher rents per square foot. Average unit size for the development is a sizable 894 square feet. In addition to the space, superior finishes and premium appliances, the complex will feature high-quality community amenities such as a resort quality pool, state of the art fitness facility, concierge, and business center.
The Company filed a Current Report on Form 8-K with respect to this investment on January 12, 2015 with the Securities and Exchange Commission.
About Bluerock Residential Growth REIT, Inc.
Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) is a real estate investment trust formed to acquire a diversified portfolio of institutional-quality apartment properties in demographically attractive growth markets throughout the United States. The Company has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
About Trammell Crow Residential
Trammell Crow Residential (“TCR”) is a premier multifamily real estate firm whose entities develop, construct and acquire multifamily communities of the highest standard. TCR owns approximately 18,000 apartment units nationwide, with an additional 4,000 new units planned for 2015. TCR has been in business for more than three decades, and has developed approximately 250,000 multifamily units in most major markets across the country.
Forward Looking Statements
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward looking statements are statements that are not historical, including statements regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could.” Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward looking statements. These forward looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur, including the property’s ability to attract target renters, management’s commentary regarding Trammell Crow’s track record, and the attractiveness and implied value of the property. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” attached as Exhibit 99.1 to Form 8-K filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) on November 18, 2014, and subsequent filings by the Company with the SEC. We claim the safe harbor protection for forward looking statements contained in the Private Securities Litigation Reform Act of 1995.