Bluerock Value Exchange (BVEX) announced the sale of Chace Lake Villas, a 264-unit apartment community located in in Birmingham, Alabama. BVEX acquired the asset for $21.5 million in September 2012 and sold it for $28.3 million in December 2017 following a successful implementation of capital improvements that increased the property’s net operating income (NOI) and resale value.
The property was acquired by BR Chace Lake, DST, a Delaware Statuary Trust (DST) structured for 1031 like-kind exchanges for accredited investors. The full-cycle investment provided an 8.1% internal rate of return (IRR), including cash flow, over the approximate 5-year hold period.
“The sale of Chace Lake within a very short hold period for our real estate savvy investors upholds our core mission: acquiring investment properties that present excellent value-add opportunities in attractive growth markets that can also deliver at-or-above market yields”, said Josh Hoffman, President of BVEX.
Bordering the affluent Riverchase Planned Community and thriving Hoover submarket, Chace Lake Villas is a three-story garden-style apartment community built in 1994-1996 that caters to the market’s young and upwardly mobile demographic. The property features resort-style amenities as well as 2.5 million square feet of luxury retail within walking distance. An additional 2 million square feet of high-end office space, housing many of Birmingham’s major employers, is within easy commuting distance.
The BVEX capital improvement program included significant upgrades to flooring, countertops, appliances, fixtures, and window treatments aimed at increasing retention rates and driving rental rate increases.
About Bluerock Value Exchange
Bluerock Value Exchange is a leading, national sponsor of syndicated 1031 Exchange offerings with a focus on Class A assets that can deliver stable cash flows and with the potential for value creation. BVEX has structured 1031 Exchanges on nearly $1 billion in total property value and nearly 7.0 million square feet of property. With capacity across nearly all real estate sectors and the ability customize transactions for individual investors, Bluerock Value Exchange is available to create programs to accommodate a wide range of tax requirements. To learn more, please visit Bluerock Value Exchange website at www.bluerockexchange.com.
BR Chace Lake DST is a closed investment program; not open to new investment.
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