18 Jun Bluerock Announces One of The Most Successful Full Cycle Events in the History of Securitized 1031 DST Programs
New York, NY (June 18, 2019) – Bluerock Value Exchange (BVEX) announced the successful sale of the Residences of Stonebrook, a 320-unit apartment community located in Nashville, Tennessee. Bluerock acquired the investment property for approximately $18.3 million in December 2011 and sold the property for $39.5 million on May 31, 2019 resulting in a phenomenal 364% total return on equity investment, or a 48.5% average annual return (AAR); one of the largest returns ever reported in the direct investment industry.
The property was acquired by BR Stonebrook, DST, a Delaware Statuary Trust (DST) structured for 1031 like-kind exchanges for accredited investors. The full-cycle event included an equity return of more than $26.9 million on an $8.7 million investment; or a 3.1x return. This appreciation does not include the payment of consistent 6.5% – 7.0% annual distributions of approximately $4.4 million over the approximate 7.5-year hold period, enhancing the total return to 364%.
“The sale of Stonebrook is an absolute grand slam investment return for our Investors”, said Josh Hoffman, President of BVEX. “Our asset and property management teams perfectly executed the business plan sustaining high occupancy rates of 98%-99% over the past 6+ years and increasing the property’s net operating income by over 80% which allowed us to maximize full value potential”, added Hoffman.
The Residences at Stonebrook is a 320-unit, Class B garden-style apartment community situated on approximately 21 acres located in Nashville, Tennessee. The Property is located in the southeast submarket, one of Nashville’s most desirable areas due to its close proximity and accessibility to multiple employment centers, highway access, and abundance of retail services. The Property is adjacent to Kroger-anchored Hickory Plaza Shopping Center and is within ¼ mile of a Lowe’s Home Improvement Center, Wal-Mart, and numerous restaurants.
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 www.bluerockexchange.com.