Bluerock Value Exchange, a sponsor of 1031 exchange offerings, has sold Venue Big Creek, a 372-unit midrise apartment community located in the Atlanta suburb of Alpharetta, Georgia.
The property was purchased by BR Big Creek DST, a Delaware statutory trust offering structured for 1031 like-kind exchanges. According to a filing with the Securities and Exchange Commission, the private placement offering launched in January 2017 and sought to raise approximately $35.4 million from accredited investors.
Bluerock, which syndicated the property for approximately $84.5 million in December 2016, sold the property for $100.3 million in February 2021, resulting in a 144 percent net total return on equity investment, inclusive of distributions, and an 11 percent internal rate of return.
Bluerock noted that the full-cycle event included an equity return of approximately $43.5 million on a $35.9 million investment, or an approximate 121 percent net gain on sale. In addition to the capital appreciation, the property paid monthly distributions of between 5.35 percent to 5.44 percent, totaling more than $8.1 million and enhancing the net total return to 144 percent.
“We are very pleased to have delivered consistent cash distributions during the hold period along with attractive total returns to investors well ahead of our forecasted hold period,” said Josh Hoffman, president of Bluerock Value Exchange. “Venue Big Creek reflects the excellent investment foresight by our real estate team in targeting unique properties that provide unparalleled live/work/play dynamics for the targeted renter-by-choice tenant and is quintessential of the targeted property and market drivers Bluerock seeks to provide to investors.”
Built in 2016, Venue Big Creek is located adjacent to Halcyon, a $370 million 135-acre mixed-use development at the Big Creek Greenway trailhead that includes shopping, dining, and office space.
Bluerock Value Exchange’s programs include nearly $1.9 billion in total property value and approximately 10 million square feet of property.