Bluerock Capital Markets LLC, a distributor of alternative investment products and the dealer manager for Bluerock Real Estate, reported new equity capital inflows of approximately $149 million in March, including sales across all three of its core business units. The company reported total capital inflows for the first quarter of more than $333 million.
The company said that monthly capital raise increased sequentially throughout the first quarter and was led by its interval fund, Bluerock Total Income+ Real Estate Fund. The company reported an approximate 116 percent increase in new equity inflows in March over the third and fourth quarters of 2020 pandemic-levels.
Bluerock also reported increases and a record capital raise in the Bluerock Residential Growth REIT’s non-traded Series T preferred stock program and more than $25 million of equity capital in March in Bluerock Value Exchange’s 1031/Delaware statutory trust exchange programs.
“It is clear that advisors and investors are focused on income and stability during the current economic environment,” said Jeffrey Schwaber, chief executive officer of Bluerock Capital Markets. “Our flagship Bluerock Total Income+ Real Estate Fund recently surpassed its 8th year of operations generating 8+ consecutive years of positive returns with no down years, 30 of 33 calendar quarters with a positive return and is doing so with less than [one-tenth] the volatility of the equity markets. Not even the global pandemic could pierce the armor of our institutional real estate fund which boasted positive returns in 2020.”
Adam Lotterman, co-chief investment officer and seniot portfolio manager of the Bluerock Total Income+ Real Estate Fund, said that the fund produced a 7.26 percent annualized net return since inception, covering its 5.25 percent annual distribution rate plus an additional 2+ percent per year in appreciation.
“We worked intensively to position the fund to take advantage of what we believe are accelerating trends with a large overweight to top-tier life science investments and last-mile industrial,” added Lotterman. “This allowed us to prosper during the pandemic and deliver a 5.5 percent total net return in just the past six months.”
Bluerock is an alternative asset manager with approximately $8.8 billion of acquired and managed assets headquartered in Manhattan with regional offices across the U.S.
Bluerock Capital Markets distributes investment products through broker-dealers and investment professionals including the Bluerock Total Income+ Real Estate Fund, Bluerock Residential Growth REIT, Inc., and programs sponsored by Bluerock Value Exchange LLC.
The Bluerock Total Income+ Real Estate Fund is a closed-end interval fund that invests the majority of its assets in institutional private equity real estate securities. As of the fourth quarter of 2020, the value of the underlying real estate held by the securities in which the fund is invested is approximately $228 billion, including investments managed by Ares, Blackstone, Morgan Stanley, Principal, PGIM, Clarion Partners, Invesco and RREEF, among others. The minimum investment in the Fund is $2,500 ($1,000 for retirement plans) for Class A, Class C, and Class L shares.
Bluerock Residential Growth REIT (NYSE: BRG) is a publicly traded real estate investment trust that focuses on developing and acquiring a portfolio of “highly amenitized” multifamily properties. The firm reports assets in excess of $2.4 billion and approximately 18,000 apartment units.
Bluerock Value Exchange is a sponsor of syndicated 1031-exchange offerings and has structured 1031 exchanges on approximately $1.9 billion in total property value and 10 million square feet of property.