BR Glenwood, DST

860 GLENWOOD AVENUE SOUTHEAST, ATLANTA, GA 30316

Offering Purchase Price: $55,403,834

Equity Amount: $22,741,834

  • Loan Amount: $32,662,000
  • Purchase Price per Unit: $254,147
  • Projected Hold Period: Approx. 7-10 Years
  • Assumed Debt (0.43532% interest): $142,185

Institute a nationally recognized third-party property management company to oversee an on-site management team of experienced and enthusiastic professionals;

Implement state-of-the-art computerized revenue management, leasing, and reputation management systems and programs to maximize revenues;

860 GLENWOOD AVENUE SOUTHEAST, ATLANTA, GA

The Property features high-quality construction and a modern living space in studio, one and two bedroom apartment floor plans. Located on approximately 2.3 acres, residents enjoy proximity to downtown Atlanta, the redeveloped Glenwood Park neighborhood, and numerous mixed use redevelopments in East Atlanta.

Key Investment Considerations

  • Newly constructed urban, infill Class “A” six-story mid-rise apartment community located in Glenwood Park, a redeveloped, urbanist community approximately 2 miles east of downtown;
  • Adjacent to the Atlanta BeltLine extension, a 22-mile developing multi-use trail, and adding more convenient walkability options and commanding significant rent premiums;
  • Centered in a walkable, authentic area with numerous recently completedtrans formative, mixed-use developments such as Ponce City Market, Inman Park Village, and Krog Street Market;
  • Bluerock has built in value creation due to the $1 million purchase price to appraised value comparison. There is also additional upside potential with the continued evolution of the neighborhood into a village concept including new major redevelopments such as the Atlanta Dairies, Beacon Atlanta, the Atlanta Stockade, and Larkin on Memorial;*
  • 51% rent growth in East Atlanta in the past 5 years, a testament to submarket desirability1; and
  • Access to award winning restaurants and trendy nightlife in the city’s most prominent retail district1.

Business Plan
Bluerock Value Exchange, LLC (“BVEX”) will seek to add value to the Property through the implementation of the following items (further detailed in the“Business Plan” section of the Memorandum):

  • Institute a nationally recognized third-party property management company to oversee an on-site management team of experienced and enthusiastic professionals;
  • Implement state-of-the-art computerized revenue management, leasing, and reputation management systems and programs to maximize revenues;
  • Use creative marketing initiatives incorporating local businesses, vendors, sponsorships, and specialized internet search engines; and
  • Capitalize on the potential rental premium associated with the extension of the Atlanta  BeltLine connecting to the Property, and the completion of several proposed additional transformative commercial and retail developments furthering increasing the desirability of the Property’s location.

Atlanta Metro Facts

  • 4.4 million residents and over 160,000 businesses in the Atlanta Metro area (U.S. Census Bureau, 2017): (Atlanta Regional Commission)
  • Over 2.7 million employed residents in the region and a 4.0% unemployment rate (Bureau of Labor Statistics, September 2017)
  • Over $300 billion gross product (CBRE Appraisal)
  • Over 110 million passengers annually at Hartsfield-Jackson Atlanta International Airport, the world’s most-traveled airport.  (Atlanta Regional Commission)
  • Home to 26 Fortune 1000 Companies, 15 Fortune 500 Company Headquarters, and 220 companies in the Inc. 5000. (Atlanta Regional Commission)
  • Over 80 hospital locations with over 100,000 healthcare practitioners  (Atlanta Regional Commission)
  • The region is projected to add 2.5 million people by 2040, theequivalent of Metro Charlotte, bringing the Atlanta Metro region total to more than 8 million people  (Atlanta Regional Commission)

Local Overview

East Atlanta is undergoing a transformation of infill redevelopment highlighted by several projects built around the continuing evolution of the Beltline. Completed projects include:

GLENWOOD PARK: a mixed-use neighborhood designed around the principles of New Urbanism near the BeltLine.

INMAN PARK/QUARTER: a highly desirable infill neighborhood along the BeltLine with luxury apartments as well as other housing types.

THE JANE, GRANT PARK: a recently completed mixeduse re-development in historic Grant Park with a mix of restaurants, pubs, bakeries, and coffeeshops.

KROG STREET MARKET: a re-developed 1920s warehousealong the BeltLine, where vendors sell produce, goods, andprepared foods.

PONCE CITY MARKET: a full renovation of the old Sears and Roebuck building is presently a marketplace of artisan chefs with a high-end retail, office, and residential component located along the BeltLine. 

The Atlanta BeltLine is the most comprehensive transportation and economic development effort ever undertaken in the City 
of Atlanta and among the largest, most wide-ranging urban redevelopment programs currently underway in the United States. The Atlanta BeltLine is a sustainable re-development project that is transforming the city. It will ultimately connect 45 intown neighborhoods via a 22-mile loop of multi-use trails, modern streetcars, and parks – all based on railroad corridors that formerly encircled Atlanta. When completed, it will provide first and last mile connectivity for regional transportation initiatives and put Atlanta on a path to 21st century economic growth and sustainability.

WHY APARTMENTS?

The “Millennial Generation”, at more than 86 million and already exceeding that of the “Baby Boomers” at similar ages, is expected to increase over the next 20 years as immigration (typically of young adults) continues to increase. Although they are only now beginning to live on their own, “Millennials” will likely form even more households than the “Gen-Xers” and even the “Baby Boomers”. In fact, according to a recent study by the National Multifamily Housing Council (NMHC), the nation is projected to add 4.6 million new renter households by 2030.

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.