Bluerock Value Exchange Sells Alabama DST Property, Nets Investors 8.1% IRR

Bluerock Value Exchange, a national sponsor of syndicated 1031 exchange offerings, has sold Chace Lake Villas, a 264-unit multifamily community located in the Birmingham, Alabama, for $28.3 million.

Bluerock Value Exchange, a national sponsor of syndicated 1031 exchange offerings, has sold Chace Lake Villas, a 264-unit multifamily community located in the Birmingham, Alabama, for $28.3 million.

The property was acquired by Delaware statuary trust, BR Chace Lake DST, in September 2012 for $21.5 million. The full-cycle investment provided an 8.1 percent internal rate of return including cash flow over the approximate 5-year hold period.

The company said that it implemented a number of capital improvements that increased the property’s net operating income and resale value.

“The sale of Chace Lake within a very short hold period for our real estate savvy investors upholds our core mission: acquiring investment properties that present excellent value-add opportunities in attractive growth markets that can also deliver at-or-above market yields,” said Josh Hoffman, president of BVEX.

Built in 1994-1996, Chace Lake Villas is a three-story multifamily property located in the Hoover submarket adjacent to upscale shopping mall Riverchase Galleria. Property amenities include a swimming pool, lighted tennis court, basketball court, child playground with rock wall, and fitness center.

The capital improvement program at the property included upgrades to flooring, countertops, appliances, fixtures, and window treatments aimed at increasing retention rates and driving rental rate increases.

Bluerock Value Exchange focuses on Class A assets that can deliver stable cash flows with the potential for value creation. The company has structured 1031 exchanges on nearly $1 billion in total property value and nearly 7 million square feet of property.

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