Bluerock Value Exchange Raises $39.4M for Multifamily DST in Atlanta Metro
Bluerock Value Exchange, or BVEX, a national sponsor of 1031 exchange and Delaware statutory trust investment programs, has fully subscribed BR Parkview Multifamily, DST, raising $39.4 million in equity from accredited investors.
Including loan proceeds, the offering represents a total property value of approximately $78 million, according to the company. Parkview is a newly constructed, 264-unit Class A apartment community in Gwinnett County, Georgia, in the Atlanta metro area.
The close comes about 10 months after AltsWire reported Parkview’s launch in January. The offering’s first sale was Jan. 20.
Bluerock described Parkview as its 47th individual DST program. When it launched the offering in January, the company called Parkview its 44th. It has since launched BR Diversified Industrial Portfolio 7, DST, or DIP 7, which it described as its 45th program, and BR Diversified Industrial Portfolio 8, DST, or DIP 8, which it described as its 46th. Bluerock did not immediately respond to a request for comment on the difference.
“We believe Parkview represents a highly favorable entry point for investing in multifamily housing, and we are pleased by the strength of investor demand,” said Josh Hoffman, president of BVEX. “The sector is poised to benefit from forecasted rent growth driven by a significant decline in new construction, an undersupply of housing options, a widening affordability gap between renting and homeownership, and continued strong household formation.”
The company said it selected Parkview for its location in Gwinnett County, which it described as the Atlanta metro’s fastest-growing county. Citing Federal Reserve Bank of St. Louis data, BVEX said the county’s population grew 27% over the past decade. Citing Gwinnett County’s 2045 Unified Plan, it said forecasted housing demand through 2040 is nearly five times the county’s current annual pace of new construction. The property is within a 30-minute drive of major employment centers and sits within Gwinnett County Public Schools’ Parkview cluster, according to the company.
At the end of the hold period, investors will have three exit options, according to BVEX: contribute their interests to a REIT operating partnership through a tax-deferred 721 UPREIT exchange, redeem their interests for cash and complete a subsequent 1031 exchange, or take cash on a taxable basis.
BVEX said it has now structured 1031 exchanges representing more than $3.6 billion in total property value and more than 17 million square feet of property. In September, when it fully subscribed the $60 million DIP 7, Bluerock reported more than $3 billion in past and current 1031 exchange programs. In August, it launched the $58.4 million DIP 8, an all-cash industrial portfolio in Florida, Illinois, and Missouri.
Bluerock, BVEX’s parent company, is an alternative investment manager with more than $20 billion in acquired and managed assets, according to the firm.
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