20 Aug Bluerock Announces the Profitable Full Cycle Sale of Overland Park, KS 1031 DST Program Acquired During the Great Recession
New York, NY (August 20, 2019) – Bluerock Value Exchange (BVEX) announced the profitable sale of the Plaza Gardens, a 200-unit apartment community located in Overland Park, Kansas. Bluerock acquired the investment property in August 2008, successfully managed the Property during the economic and real estate downturn during the Great Recession, completed a strategic refinance and recapitalization for Investors in 2015 for an all-in investment cost of approximately $30.2 million and successfully sold the property for approximately $33.2 million in July 2019; resulting in a 134% total return on equity investment, inclusive of distributions.
“We are pleased with the overall investment success for Investors in our Plaza Gardens property”, said Josh Hoffman, President of BVEX. “This transaction is significant because the U.S. entered the Great Financial Crisis after we acquired the property, as a result of which the property endured a sluggish period of lower occupancy and rent growth. However, Bluerock worked actively to refinance and recapitalize the property to effectuate capital improvements, without a capital call and while preserving a 1031 exit, and managed the property aggressively into a recovering market environment to maximize value for the investor,” added Hoffman.
“We believe the measure of the best investment sponsors is their performance in the worst of economic times, more so than the best of times. Plaza Gardens is a testament to the Bluerock organization’s commitment to manage through all cycles to achieve a successful outcome for its Investors,” said Jeffrey S. Schwaber, CEO of Bluerock Capital Markets.
This sale marks the third successful full-cycle DST property disposition by BVEX in 2019. In the aggregate, BVEX sold three properties for a combined $124 million as compared to total investor purchase price of $87.5 million, returning more than $74 million in total returns, inclusive of distributions, on $36.5 million of original equity, for an average annual return of approximately 23.6%.
The property was acquired by BR Plaza Gardens, DST, a Delaware Statuary Trust (DST) structured for 1031 like-kind exchanges for accredited investors. Plaza Gardens is a Class A, townhome community consisting of 200 units located in Overland Park, KS. The Property, built in 1999, features a large campus with mature landscaping on 20.1 acres and large townhome units averaging 1,437 square feet with best in class amenities including: swimming pool with a hot tub spa, clubhouse with 24-hour fitness center and WiFi Java lounge, playground, basketball court, courtyards and dog park.
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.