KBS Legacy Partners Sells Charlotte Multifamily Property to Bluerock Residential Growth REIT

Bluerock Residential Growth REIT Inc. (NYSE MKT: BRG), a publicly traded real estate investment trust, purchased the Wesley Village Apartments in Charlotte, North Carolina for approximately $56.85 million, or roughly $189,000 per residential unit.

Bluerock Residential purchased the property with an investment of $16.5 million, financing the remainder with a fixed rate loan of $40.5 million from Freddie Mac.

The non-traded KBS Legacy Partners Apartment REIT, which sold the property to Bluerock Residential, originally purchased the property in November 2012 for approximately $45 million.

Built in 2010, Wesley Village is a 301-unit Class A property comprised of studio, one- two- and three-bedroom units averaging 1,025 square feet, a saltwater pool with grilling area and wet bar, fitness center, game room with billiards table, business center with Wi-Fi, and a dog park.

Bluerock Residential plans to implement a $2 million renovation program to upgrade units and common spaces, and projects the acquisition will yield a pro-forma stabilized cap rate of 6 percent.

“The Wesley Village Apartments property is squarely in the path of growth for Bluerock,” said Ramin Kamfar, chairman and CEO of BRG. “We were able to purchase the property at a very favorable cost basis and, with implementation of value-added improvements and management efficiencies, we are confident that Wesley Village will be a strong performer for the REIT as well as a highly-competitive player in its market.”

The property is situated one mile from the Uptown central business district, fewer than seven miles from the Charlotte airport, and directly within the expanding FreeMoreWest submarket.

According to the company, FreeMoreWest has sustained a robust population growth of more than 10 percent since 2010, while the greater Charlotte metro area, fueled by an influx of new firms to the area, has added more than 30,000 jobs over the past year.

Bluerock Residential Growth REIT focuses on acquiring a diversified portfolio of Class A institutional-quality apartment properties in demographically attractive growth markets. As of December 31, 2016, the company’s portfolio consisted of interests in 31 properties (21 operating and 10 development properties).

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