Bluerock Capital Markets LLC, a distributor of alternative investment products and the dealer manager for Bluerock, has reported a new annual record capital raise of more than $2.1 billion in 2021. The company said that its trailing three-month sales annualize to approximately $3.3 billion.
Bluerock Capital Markets’ record inflows represent a 117 percent year-over-year increase from 2020, which the company said was driven by individual annual capital raise records for all three of its investment programs.
Its flagship interval fund, Bluerock Total Income+ Real Estate Fund, posted sales of more than $1.5 billion, including distribution reinvestment, which was an increase of 87 percent compared to 2020. Sales of Bluerock Residential Growth REIT’s non-traded preferred stock offering totaled $464 million, an increase of 90 percent. Sales for Bluerock Value Exchange’s 1031 exchange programs totaled $214 million, up 120 percent.
“Entering 2021, we expressed our bullish outlook for institutional real estate commensurate with the economic recovery driven by strong overall demand and record-breaking rent growth across many property sectors, as well as the historical precedence for outsized real estate returns during post-recessionary periods,” said Jeffrey Schwaber, chief executive officer. “We continue to have a bullish real estate outlook for 2022, particularly with strong convictions in the apartment, life-science, industrial and single-family rental home sectors…”
The Bluerock Total Income+ Real Estate Fund closed 2021 with record inflows of more than $225 million in December and more than $3.8 billion in assets under management, making it the third largest interval fund among all 72 active interval funds, the company said, citing data from intervalfundtracker.com.
Bluerock noted that the interval fund set a new annual record and a total net return to shareholders of 21.9 percent with a 1.6 percent annualized standard deviation since inception in April 2014 (Class I shares: TIPWX) as of December 31, 2021. The fund reportedly had the highest capital inflows year-to-date through November among all active interval funds within the direct investment industry, according to the most recent Stanger Market Pulse.
The Bluerock Total Income+ Real Estate Fund has reportedly paid 36 consecutive quarterly distributions at a 5.25 percent annualized rate with an 8.6 percent annualized net return since inception in October 2012 (Class A shares, no load) resulting in 335 basis points of annual appreciation above the annual distribution rate. Returns for Class A shares with a maximum load of 5.75 percent would have been 7.9 percent.
Bluerock Residential Growth REIT closed its Series T preferred stock offering after raising more than $706 million in total capital. It recently paid its 68th consecutive monthly distribution at the stated dividend rate of 6 percent for Series B and 6.15 percent for Series T shares. Bluerock Residential Growth REIT (NYSE: BRG) is a publicly traded real estate investment trust with $2.4 billion in assets and approximately 17,900 apartment units and holds a 49 percent market share of new investments into non-traded preferred stock within the direct investment industry, the company said.
Bluerock Value Exchange full cycled three sponsored Delaware statutory trust programs in 2021 resulting in $124 million in total investment returns on $84 million of equity, an 11.2 percent internal rate of return to investors, including appreciation and distributions.
Bluerock is an alternative asset manager with more than $11.8 billion of acquired and managed assets. The company is headquartered in Manhattan with regional offices across the U.S.
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