BR Four Corners Orlando, DST

1000 KETNER STREET, DAVENPORT (ORLANDO MSA), FLORIDA 33897

Total Fully Syndicated Price: $38,846,134

Equity Amount: $16,421,134

  • Loan Amount: $22,425,000
  • Purchase Price per Unit: $139,812
  • Projected Hold Period: Approx. 7-10 Years
  • Assumed Debt (1.35648% interest): $304,191

The Master Tenant sub-leases the  Property to the residential tenants (the “Residents”) who occupy the apartment units. The purpose of the Master Lease is to permit the Master Tenant to operate the Property on behalf of the Trust and to enable actions to be taken with respect to the Property that the Trust would be unable to take due to tax law-related restrictions, including but not limited to, a restriction against releasing the Property.

1000 KETNER STREET, DAVENPORT (ORLANDO MSA), FLORIDA

The Property features high-quality construction and a modern living space in one, two or three bedroom apartment homes. Located on approximately 19.2 acres near southwest Orlando, residents enjoy an abundance of resort-style amenities.

Resort-style swimming pool with sundeck, Fitness center, Indoor basketball courts,Walking/jogging trail

Key Investment Considerations

  • Employment Growth:
    Orlando is one of the fastest growing job centers in the nation among larger metros at 4.6% annually 1. Forbes ranked Orlando as the #1 “City for Job Growth” in 2014. CBRE projects Orlando to be #2 in the nation for job growth through 2017.
  • Proximity to Walt Disney World:
    3.5 miles to the area’s largest employer (74,000 workers) and worldwide tourist destination ($18.2 billion in annual economic impact).
  • High Growth Metro:
    The Orlando metro area has an estimated 2014 population of approximately 2.3 million. CNN Money named Orlando as one of the “10 Fastest Growing Cities”.
  • Strong Apartment Market:
    Since 2011, occupancy rates within the Orlando Metro have remained above 93%. As of fourth quarter 2015, the occupancy rate was 94.4%2.
  • Nearby Submarket Expansion:
    Amazon, FedEx, and Wal-Mart are building major distribution facilities totaling more than 2.5 million square feet on US 27 less than 10 minutes drive from the Property.

Financing

The Property’s acquisition will be financed, in part, from a loan
in the principal amount of $22,425,000. Other key Loan terms
are summarized below:

  • Underwritten by Fannie Mae, 10-year term, 5-years interest only, 30-year amortization thereafter
  • Attractive 4.19% fixed interest rate
  • Non-Recourse to investors
  • Financing is assumable upon sale; if applicable

Regional Overview

The Property is located in Davenport, Florida in the Orlando Metropolitan Statistical Area (MSA) (“Orlando MSA”) in the interior of Central Florida, near the intersection of Highway 192 and Highway 27, approximately 22 miles southwest of downtown Orlando. The Orlando MSA is comprised of approximately 2,321,418 residents, ranked 26th of 381 MSAs in the nation. 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 Orlando MSA area’s population grew by 8.8% from 2010-2014, the second fastest growing top 30 metro. The Orlando MSA population grew by 29.8% from 2000-2010 and by 34.3% from 1990-2000, about triple the national average for both time periods (Orlando Economic Development Commission).

Local Overview

According to the appraisal, the Property’s neighborhood consists primarily of numerous residential, commercial, and retail uses. For the most part, the neighborhood represents a growing area in the southwest portion of the Orlando MSA. The neighborhood is primarily comprised of single family and multifamily residences, with an extensive level of commercial, retail and office development located along the primary commercial thoroughfares of U.S. Highway 27 and Highway 192. Commercial uses include a Publix-anchored shopping center located approximately 0.2 miles from the Property as well as numerous other retail centers with tenants that include TJ Maxx, Super Target and Lowe’s. Located just south of the Property is the Champions Gate Golf Course and Tuscana Resort. Additionally, Walt Disney World is 3.5 miles east of the property.
Walt Disney World Resort is a significant contributor to the economic well-being and vitality of Central Florida. Disney is the largest single-site employer in the United States, employing nearly 74,000 people in Central Florida, in more than 3,000 different job classifications with total annual payroll of $1.6 billion. Walt Disney World Resort is also the largest single taxpayer in Central Florida, contributing approximately $566 million a year to state and local government coffers. The resort also accounts for 2.5% of the gross domestic product for the entire state of Florida.

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 trend, the Orlando Metro apartment market is very robust with a low 4.9% vacancy rate. Rental rateshave risen steadily since 2009 and the REIS Inc. forecasts sustained rent increases of 9% 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.

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