BRG Takes Stake in Town Park’s Residential Component
- Aug 01, 2014
Bluerock Residential Growth REIT (BRG) has announced its plan to co-invest in the apartment community that will be developed as part of the Publix-anchored master-planned mixed use development called Town Park in Orlando.
The estimated cost to complete the development is $37 million and BRG expects to invest up to $4 million of preferred equity with the ability to convert into a common equity position following stabilization of the development. Catalyst Development Partners, the developer, will contribute approximately 15 percent of the required equity. Affiliates of Bluerock Real Estate LLC control the remaining equity in the development.
“By converting land designated for office use to residential use, Bluerock was able to achieve a below market land basis for the project, allowing a $10,000 – $15,000 per unit cost advantage,” says Ramin Kamfar, chairman and CEO of BRG.
The 296-unit Class-A property located in close proximity to the University of Central Florida will feature upscale one- and two-bedroom units averaging 722 square feet for a one bedroom unit and 1,118 square feet for a two bedroom floor plan. Plans call for a so-called “e-urban” architectural design, meaning a slightly higher density than traditional garden-style communities. The unit and community finishes and amenities, however, are designed to be of superior quality for market in order to provide a high-end alternative to garden-style living. The community will include surfaced parked.
The developers expect that the design and the amenities combined with the favorable location directly adjacent to Central Florida Research Park will attract “the area’s young and upwardly mobile residents,” according to a press release issued about the project. The site is also close to other major employers as well as numerous retail projects such as Quadrangle Office Park or the Waterford Lakes Town Center.
Image source: townparkshoppingcenter.com