BR Grand at Westside, DST

3250 DOUGLAS GRAND, KISSIMMEE, FLORIDA 34747

Offering Purchase Price: $74,444,763

Equity Amount: $32,883,763

  • Loan Amount: $41,561,000
  • Purchase Price per Unit: $218,930
  • Projected Hold Period: Approx. 7-10 Years
  • Assumed Debt (0.30106% interest): $125,124

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;

3250 DOUGLAS GRAND, KISSIMMEE, FLORIDA

The Property offers luxury lifestyle features, high-quality construction and an amenity-rich living space in one, two, three and four bedroom apartment floThe Property offers luxury lifestyle features, high-quality construction and an amenity-rich living space in one, two, three and four bedroom apartment floor plans.

Key Investment Considerations

  • Orlando’s economy is booming with a low 3.5% unemployment rate driven by a 3.2% job growth rate in the last five years, nearly double the national average.
  • Orlando Metro was #1 for job growth and the #2 Metro for population growth in 2016.
  • The Orlando multifamily market and Osceola County submarket are both very healthy with a 95.9% and 94.6% apartment occupancy rate, respectively. Projections call for rising rents and stable high occupancy rates in both the Orlando market and the Osceola submarket (the Property’s submarket).
  • Orlando Metro has been one of the nation’s fastest growing, with well above average population growth since 1990 and nearly 45% population growth since 2000. Osceola County (the County where the Property is located) has experienced 87%+ population growth since 2000.
  • The Property is located approximately 6-11 miles from the Walt Disney theme parks, the MSA’s largest employer (74,000 workers) and worldwide tourist destination. Disney contributes $18.2 billion in annual economic impact.

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
  • Activate and accessorize the clubhouse, leasing office and community areas with new decor, furniture and paint. Upgrade and enhance fitness center and equipment.

Regional Overview

Orlando Metro’s 2017 3.8% employment growth rate was the nation’s fastest growing among large metropolitan areas and its 3.3% unemployment rate is among the lowest nationally. These indicators speak to the region’s ability to attract new talent from elsewhere in the United States and abroad. The Metro’s fastest growing industries during the last year have been manufacturing, construction, and financial services growing at 13.1%, 7.5%, and 6.3% respectively, outpacing national levels. The leisure and hospitality sector, Orlando Metro’s largest, grew 4.3%, but added the most jobs of any single category (10,900) followed closely by professional and business services. According to the Appraisal, “Orlando is one of the fastest growing metros in the nation and has seen job growth over twice the national average since 2014. The healthy labor market has contributed to both strong recent demand and an increase in younger renters. Furthermore, the University of Central Florida provides a steady stream of renters to much of the metro, particularly the Southeast Submarket. As the second-largest university in the country by enrollment (more than 65,000), it houses only about 20% of its students, leaving plenty of renters looking for additional housing.

Local Overview

The Property is located in the southwest portion of the Orlando metro near the Walt Disney World theme parks. The Property offers immediate access to abundant shopping with two Publix grocery-anchored shopping centers within 1 mile. In addition, there is a Walmart Supercenter, a Target, and Cagan’s Crossing shopping center offering a mix of restaurants, within three miles. The Property is surrounded by an abundance of resorts catering to Orlando’s 68 million annual visitors with the Disney Theme Parks as a prominent driving economic force in the local area. The new Margaritaville Resort is under development just to the east of the Property. This new resort will feature multiple residential options, shopping, a water park, and other outdoor activities. The Property’s local area is rapidly growing evidenced by the 4.4% annual growth in households in the one-mile radius from 2010-2017. Additional household growth is projected to average over 3% annually through 2022. This strong population growth is spurring new retail development, including the parcel adjacent to the Property, which slated for retail development.

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.