Bluerock Value Exchange, a sponsor of syndicated 1031 exchange offerings, has sold the Residences of Stonebrook, a 320-unit apartment community located in Nashville, Tennessee, which was acquired by BR Stonebrook DST, a Delaware statutory trust offering.
The Residences at Stonebrook is a Class B apartment community situated on approximately 21 acres in Nashville’s southeast submarket.
Bluerock purchased the property for approximately $18.3 million in December 2011 and sold the property for $39.5 million on May 31, 2019, resulting in a 364 percent total return on equity investment, or a 48.5 percent average annual return. Bluerock claims that this is one of the largest returns reported in the direct investment industry.
Bluerock noted that the full-cycle event included an equity return of more than $26.9 million on an $8.7 million investment; or a 3.1x return, and the appreciation did not include the payment of 6.5-7.0 percent annual distributions of approximately $4.4 million over the approximate 7.5-year hold period.
“The sale of Stonebrook is an absolute grand slam investment return for our investors,” said Josh Hoffman, president of Bluerock Value Exchange. “Our asset and property management teams perfectly executed the business plan sustaining high occupancy rates of 98-99 percent over the past 6+ years and increasing the property’s net operating income by over 80 percent, which allowed us to maximize full value potential.”
Bluerock Value Exchange focuses on Class A properties and its structured 1031 exchange programs include nearly $1.4 billion in total property value and approximately 8.6 million square feet of property.