Bluerock Generates a 165% Total Return with the Successful Sale and Full-Cycling of a Florida Multifamily 1031 Exchange Property
New York, NY (November 1, 2021) – Bluerock Value Exchange (BVEX) announced the successful sale of Beach House, a 228-unit garden style apartment community located in Jacksonville Beach, Florida. Bluerock offered the investment property for approximately $51.8 million in April 2016 and successfully sold the property for $67.3 million in October 2021 resulting in a 165% net total return on equity investment, inclusive of distributions, and an approximate 12% average annual return achieved over an approximate 5.5 year holding period.
The property was acquired by BR Beach House, 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 $29.9 million on a $21.6 million initial investment, or an approximate 139% net gain on sale. In addition to the capital appreciation, the property paid consistent monthly distributions averaging 4.8% per year totaling nearly $5.7 million and enhancing the net total return to 165%.
“We are very pleased to have delivered double digit annual returns to investors and a liquidity event ahead of our forecast”, said Josh Hoffman, President of BVEX. “In addition to consistently sustaining high occupancy rates, we successfully completed a number of value-add initiatives over the investment period which we believe created tremendous upside resale value including complete exterior repainting, landscaping upgrades, new signage, fitness center upgrades, common area upgrades and improvements as well as 29 unit renovations which alone generated an approximate 19% return on investment”, added Hoffman.
The property, built in 2009, offers residents a variety of unique 1-2-and-3-bedroom floor plans, state-of-the-art amenities and location within walking distance to the beach, hiking and biking trails and is a premier location within Jacksonville for trendy dining, shopping, and entertainment with convenient access to Interstate 295 and Interstate 95, the main arteries for the region.
About Bluerock Value Exchange
Bluerock Value Exchange (BVEX) is a leading, national sponsor of Premier Exchange Properties™ and 1031 exchange replacement properties with a focus on Class A apartments that can deliver stable cash flows and with high potential for value creation. BVEX’s structured 1031 exchange programs includes more than $2 billion in total property value and approximately 11 million square feet. To learn more, please visit our website at bluerockexchange.com.