BR Riverside, DST

100 MAGNOLIA STREET, JACKSONVILLE, FLORIDA 32204

Projected Syndicated Price: $64,134,298

Equity Amount: $26,454,298

  • Loan Amount: $37,680,000
  • Purchase Price per Unit: $203,199
  • Projected Hold Period: Approx. 7-10 Years
  • Assumed Debt (0.84202% interest): $317,272

The Brooklyn Riverside (the “Property”) represents an opportunity to invest in a Class A apartment community in a major economic metro in the largest city in North Florida. 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 Class A downtown location.

100 MAGNOLIA STREET, JACKSONVILLE, FLORIDA

The Property features high-quality construction and a modern living space in one and two bedroom apartment homes. Located on approximately 8.15 acres approximately one mile from downtown Jacksonville, residents enjoy proximity to the convention center, baseball grounds, Everbank Field, and Veterans Memorial Arena.

Key Investment Considerations

  • Immediate Value Creation as the Property was purchased in its final lease-up stage at an approximate $1.8 million discount to stabilized value potentially allowing for instant value creation (Property 94% leased as of June 2016);
  • One of Only Two newly-constructed Class A, urban-style projects in the downtown area; located within walking distance of downtown Jacksonville and its 50,000+ jobs and major city attractions;
  • Projected Growth with the population of Jacksonville expected to significantly outpace the national average by more than two times over the next five years, creating outsized demand;
  • An Affluent Resident Base with an average household income of $83,700, more than five times the average rent at the Property; and
  • Strong Multifamily Market with the Jacksonville market maintaining above 93% apartment occupancy. Effective rents grew by over 3% in 2015 and REIS projects over 3% effective rent growth in 2016 as well.

Property Summary

The Property features high-quality construction and a modern living space in one and two bedroom apartment homes. Located on approximately 8.15 acres approximately one mile from downtown Jacksonville, residents enjoy proximity to the convention center, baseball grounds, Everbank Field, and Veterans Memorial Arena.

  • waterwave granite or white quartz countertops
  • vinyl plank flooring
  • under mount single basin kitchen sinks
  • high gloss cabinetry
  • imported Italian cabinets
  • tile backsplash in kitchens
  • stainless steel appliance
  • walk-in closets
  • private balconies
  • washers and dryers in all units
  • Jacksonville skyline and river views available

Regional Overview

The Property is located in Jacksonville, Florida in the Jacksonville Metro in the northeast corner of Florida, centered on the banks of the St. Johns River, and is approximately one mile east from Downtown Jacksonville. The Jacksonville Metro is comprised of approximately 1.6 million residents. The State of Florida recently passed New York as the third largest state in the U.S. with a population reaching nearly 20 million. (U.S. Census Bureau)
The Jacksonville Metro area’s population grew by 5.1% from 2010-2014 and is projected to grow by an additional 10% by 2020 (Appraisal/Economy.com)

Jacksonville Metro Facts

  • 1.6 million residents, nearly 900,000 in Duval County (Property is located in Duval County)
  • 4.4% unemployment rate, lower than the State of Florida and the U.S.
  • 640,000 total employment and projected to grow over 2.5% annually through 2018
  • Home to three Fortune 500 company headquarters and more than 80 national or divisional headquarters
  • The State of Florida attracted a record 97.3 million visitors in 2014 (Tampa Bay Times, February 2015)
  • 12 of America’s top 50 2014-2019 projected fastest growing metros are located in the State of Florida

Local Overview

According to the Appraisal, the Property’s neighborhood has an extensive level of infill commercial and retail development. Located adjacent to the Property is a Fresh Market retail center that also includes several smaller retail/restaurant-related tenants. A CVS is proposed for development adjacent to this site. Also located within close proximity is Downtown Jacksonville that features numerous high-rise office buildings and employers including Wells Fargo, Bank of America, EverBank, Prudential, Baptist Health and Haskell. The Jacksonville downtown market area employs over 50,000 employees, many of which have salaries that are well above the average for the Jacksonville market area. Future development is primarily restricted to sites that will require demolition of existing improvements in order to construct new commercial buildings.

WHY APARTMENTS?

Nationwide, the apartment market has been a top performer driven by the growth of Echo Boomers (those born between 1980 and 2000) 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 Jacksonville Metropolitan Statistical Area (“Jacksonville Metro”) apartment market is very robust with a low
6.7% vacancy rate. Rental rates have risen steadily since 2010 and REIS Inc. forecasts sustained rent increases of 11% through 2020 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.