Bluerock Value Exchange (BVEX) announced the successful sale of the Landings at Four Corners, a 270-unit apartment community located in Davenport, FL (Orlando Metro). Bluerock acquired the investment property for approximately $39 million in February 2016 and successfully sold the property for approximately $51.3 million in July 2019 resulting in a 166% total return on equity investment, or a 19.2% average annual return; all achieved in approximately three and a half years.
The property was acquired by BR Four Corners Orlando, DST, a Delaware Statuary Trust (DST) structured for 1031 like-kind exchanges for accredited investors. The full-cycle event included an equity return of approximately $23.8 million on a $16.6 million investment; or a 143% return. This appreciation does not include the payment of consistent 5.5% – 7.5% of monthly distributions totaling approximately $3.7 million, enhancing the total return to 166%. Notably, due to the value creation and operating successes of our asset management team, the DST was able to pay substantially enhanced cash distributions from the original projections in each year as a result of receiving payments of Supplemental Rent under the master lease.
This sale marks the third successful full-cycle DST property disposition by BVEX in 2019. In the aggregate, BVEX sold three properties for aggregate net proceeds of $124 million as compared to total investor purchase price of $87.5 million; resulting in net gain on sale to Investors, after deducting sale expenses and full repayment of debt of approximately $36.5 million, and inclusive of monthly distributions, net total returns of approximately $48 million.
