Bluerock Value Exchange, a sponsor of syndicated 1031 exchange offerings, has taken its fifth Delaware statutory trust program of the year full cycle with the sale of Ansley Village, a 294-unit apartment community located in Macon, Georgia, approximately 75 miles south of Atlanta. The program, BR Ansley DST, was structured as a 1031 like-kind exchange for accredited investors.
Ansley Village was purchased in May 2014 for approximately $30.9 million and sold for approximately $34.15 million in October 2019. The company reported a 137 percent total return on equity investment, inclusive of distributions, and an IRR of 8.4 percent.
“We are very pleased to have delivered very attractive total returns to the investors in Ansley Village ahead of our forecasted hold period,” said Josh Hoffman, president of Bluerock Value Exchange. “In addition to the gain on sale, the property generated high cash distributions of over $4.6 million during the investment period which is a very important element to our DST investors.”
He added, “These returns were primarily driven by the operational consistency of our asset and property management teams that maintained occupancy rates near 97 percent and successfully increased revenues and net operating income over the investment period by a significant 21 percent and 32 percent, respectively.”
This sale marks the fifth full-cycle DST property disposition by Bluerock Value Exchange this year. The company noted that it sold five properties for a combined $226 million, as compared to total investor purchase price of $161 million, returning more than $122 million in total returns, inclusive of distributions, on $70 million of original equity, for an average annual return of approximately 17.9 percent.
Built in 2008, Ansley Village totals 324,400 rentable square feet with floor plans averaging 1,103 square feet. Amenities include a swimming pool with waterfall, clubhouse with 24-hour fitness center, executive business center, clothes care center, playground, dog park, garages, and storage units.
Bluerock Value Exchange’s structured 1031 exchange programs include nearly $1.6 billion in total property value and approximately 9.1 million square feet of property.