BR Clearwater, DST
2168 DRUID ROAD, CLEARWATER, FLORIDA 33764
Total Fully Syndicated Price: $45,702,157
Equity Amount: $18,695,157
- Loan Amount: $27,137,000
- Purchase Price per Unit: $189,092
- Projected Hold Period: Approx. 7-10 Years
- Assumed Debt (1.19149% interest): $326,599
Clearwater (the “Property”) represents an opportunity to invest in a lavish, newly constructed apartment community in a major economic metro and in Florida’s most densely populated county. The investment opportunity seeks to provide current cash flow with upside from growth in market rents, and professional property management capitalizing on the Property’s A+ location.
2168 DRUID ROAD, CLEARWATER, FLORIDA
The Property features brand new, high-quality construction and an abundance of attractive, modern amenities, located just minutes from the world-famous Clearwater Beach. Include a resort-style swimming pool, poolside lanai, a jumbo clubhouse with a fitness center, grilling stations, an activity courtyard, a cyber café, a jogging trail, gated access, lake views, a tot lot, a billiards lounge, and detached garages.
Key Investment Considerations
- Value Creation Potential: The Property was purchased in its lease-up stage at a discount to the fully leased (i.e. stabilized), third-party appraised value, potentially creating immediate value.
- High Growth Metro: The Tampa-St. Petersburg-Clearwater metro area has an estimated 2015 population of approximately 2.9 million and is forecast to grow to approximately 3.1 million by 2020, making it one of the largest metropolitan areas in the Southeast.
- Strong Apartment Market: Since 2010, occupancy rates within the Clearwater submarket have remained above 93%. As of second quarter 2015, the occupancy rate was 95.7%.
- Growing Economy: Home to 19 billion-dollar companies, the Tampa economy is projected to grow 4% annually in each of the next 3 years.
- New, Class A Construction: The property was recently completed in 2014 with state-of-the-art modern amenities.
- Affluent Resident Base: Average resident household income of $82,000/year.
Property Summary
The Property features brand new, high-quality construction and an abundance of attractive, modern amenities, located just minutes from the world-famous Clearwater Beach.
- Year Build: 2014
- Class: A+
- Buildings: 9
- Acres: 18.4
- Number of Units: 240
- Total Square Feet: 243,456
Regional Overview
The Property is located in Clearwater, Florida in the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area Metros (“Tampa Metro”) along the Gulf Coast of Florida, Along the Gulf to Bay Road, approximately 20 minutes west of downtown Tampa. The Tampa Metro is comprised of approximately 2.9 million residents, placing it among the top 5% of Metros in the nation. (Source: Bureau of Economic Analysis), The State of Florida recently passed New York as the third largest state in America with a population reaching nearly 20 million. (U.S. Census Bureau)
The Tampa Metro area’s population grew by 13.8% over the last decade and is expected to grow by another 7.8% by year end 2018, adding 222,530 new residents to the metro.
Metro Tampa Facts
- 2.9 million residents
- Projected nationwide 10th fastest population growth from 2014-2019
- 1.25 million total employment
- Projected top 40 national Metros employment growth ranking from 2014-2019
- The State of Florida attracted a record 97.3 million visitors in 2014 (Tampa Bay Times, February 2015)
- 12 of the top 50 2014-2019 projected fastest growing metros are located in the State of Florida
Local Overview
The Property is located in Clearwater, Florida in a neighborhood consisting primarily of residential development and neighborhood shopping centers along major roads. Clearwater has begun a renaissance of sorts and is poised for further gentrification. The area was established in the 1960s and 1970s with modest ranch style homes and other low density uses. However, the Tampa metro’s growth and Clearwater’s proximity to Tampa employment centers and top rated beaches are transforming the local area.
The Gulf to Bay Boulevard is the primary thoroughfare in the neighborhood and connects Clearwater Beach with downtown Tampa. With 55,700 cars per day travelling along this major corridor, most of the area’s top shopping destinations are located here including a WaWa neighborhood market, a Publix Supermarket, and a Lowe’s/ Costco/Home Depot/Target/Sam’s Club- anchored Power Center (a recent redevelopment of an enclosed mall).
Access to world class beaches is the signature mark of Clearwater. Several of Florida’s most highly ranked beaches are located just a few miles from the Property via the Gulf to Bay Boulevard. Recreational opportunities are abundant at Clearwater Beach, Sand Key, and Caladesi Island State Park. Pier 60 is located on Clearwater Beach and is one of the best equipped fishing piers in Florida and also offers fine dining, shopping, and entertainment.
WHY APARTMENTS?
Nationwide, the apartment market has been a top performer driven by the growth of Echo Boomers and aided by the lowest home ownership rate in 20 years.*
The majority (59%) of the 22 million new households that will form between 2010 and 2030 will rent, while just 41% will buy their homes. This change will create a surge in rental demand from now until 2030.
Consistent with this national trent, the Tampa Metro apartment market is very robust with a low 5.1% vacancy rate. Rental rates have risen steadily since 2009 and the REIS Inc. forecasts sustained rent increases through 2019 driven by low vacancy rates.
About Bluerock Value Exchange, LLC
BVEX is a national sponsor of syndicated 1031 exchange offerings with a focus on Class A assets that can deliver stable cash flows and have the potential
for value creation. BVEX is an affiliate of Bluerock Real Estate, L.L.C., a private equity real estate investment firm that sponsors a portfolio currently exceeding
25 million square feet of primarily apartment and office real estate, including approximately $1.1 billion in total property value and over 7.5 million square
feet of property. Bluerock’s senior management team has an average of over 25 years investing experience, has been involved with acquiring over 35 million
square feet of real estate worth approximately $10 billion, and has helped launch leading real estate private and public company platforms.