Bluerock Value Exchange Completes Full-Cycle Sale of Five DST / 1031 Exchange Programs Comprising $393 Million in Value; Delivers Over $101 Million in Net Returns and 16.7% Average Annual Return to Investors

August 23, 2022 / Bluerock Value Exchange Press Releases

New York, NY (August 23, 2022) – Bluerock Value Exchange (BVEX) announced the successful full-cycle sale of five distinct Delaware Statutory Trust (DST) programs held for 1031 exchange investment. The individual property sales occurred between August 8 – August 15, 2022. The five programs collectively comprised more than $393 million in total sell-out value, with more than $101 million in total net returns to investors, inclusive of annual cash distributions (1.87x average equity multiple), and 16.7% average annual returns over an average approximate 5-year hold period.

The five separate DST / 1031 exchange investment programs represent geographically diverse apartment communities located in high economic growth areas strategically selected by Bluerock for their highly attractive live/work/play attributes catering to the sought-after renter-by-choice cohort and were acquired between 2015 and 2018 and summarized below:

BR Sonoma Pointe DST, located in Orlando, Florida, was acquired for $44.72 million by investors (inclusive of all costs) in August 2017, and sold for $68 million on August 15, 2022 (5-year hold period) generating a total return to investors of $24.73 million, inclusive of annual cash distributions, for a 2.3x equity multiple and a 26% average annual return.
BR Clearwater DST, located in Clearwater, Florida, was acquired for $46.4 million by investors (inclusive of all costs) in September 2015, and sold for $66.9 million on August 8, 2022 (6.8-year hold period) generating a total return to investors of $24.33 million, inclusive of annual cash distributions, for a 2.26x equity multiple and an 18.4% average annual return.
BR Grand at Westside DST, located in Orlando, Florida, was acquired for $74.78 million by investors (inclusive of all costs) in February 2018, and sold for $101 million on August 8, 2022 (4.5-year hold period) generating a total return to investors of $24.83 million, inclusive of annual cash distributions, for a 1.75x equity multiple and a 16.9% average annual return.
BR Axis West DST, located in Orlando, Florida, was acquired for $70.2 million by investors (inclusive of all costs) in May 2018, and sold for $86.5 million on August 8, 2022 (4.2-year hold period) generating a total return to investors of $13.22 million, inclusive of annual cash distributions, for a 1.42x equity multiple and a 10.0% average annual return.
BR Grand Dominion DST, located in San Antonio, Texas, was acquired for $57.13 million by investors (inclusive of all costs) in September 2017, and sold for $71 million on August 8, 2022 (4.9-year hold period) generating a total return to investors of $14.12 million, inclusive of annual cash distributions, for a 1.6x equity multiple and a 12.2% average annual return.

“We are very pleased to have delivered attractive double-digit annualized returns over a reasonably shorter hold period to all of our investors in these programs”, said Josh Hoffman, President of BVEX. “Our DST / 1031 exchange investment programs are designed to provide investors seeking ongoing tax deferral with competitive and consistent monthly cash distributions with annual capital appreciation which we seek to accelerate through state-of-the-art revenue management programs, oversight by high-quality third-party property management teams, and active value-add property enhancements. These areas of focus and quality implementations continue to provide robust returns for our investors”, added Hoffman.

About Bluerock Value Exchange
Bluerock Value Exchange is a national sponsor of syndicated 1031-exchange offerings with a focus on Premier Exchange Properties™ that seek to deliver stable cash flows and potential for value creation. Bluerock has structured 1031 exchanges on approximately $2.4 billion in total property value and 12 million square feet of property.

About Bluerock Real Estate
Bluerock is a leading institutional alternative asset manager with more than $15 billion of acquired and managed assets headquartered in Manhattan with regional offices across the U.S. Bluerock principals have a collective 100+ years of investing experience with more than $48 billion real estate and capital markets experience and have helped launch leading private and public company platforms. Additional information can be found at bluerock.com.