Bluerock: BR Churchill Downs Multifamily DST
Investment Overview
Churchill Downs (the “Property”) represents the opportunity to invest in a low-density, direct-entry townhome and garden-style apartment community located in the Pinehurst Metro in North Carolina. The Property is located approximately 90 miles to the Charlotte Metro and less than 70 miles to the Raleigh-Durham Metro. The Property is highly visible within the area, located adjacent to US Route 501, US Route 1, and State Route 27, and less than a five-minute drive to 60% of the market’s retail.
Offering Strengths
Property sub-manager (RPM Living) currently manages more than 225,000 apartment units in markets across 30 states. Property may have some value-add upside.
Offering Weaknesses
Micro market in the middle of NC with no nearby colleges or significant job centers. Much older property than typical DST apartment community.
Key Facts
Sponsor: Bluerock
Structure: Delaware Statutory Trust (DST)
Location(s): North Carolina
Property Type(s): Multifamily
Assumable Loan: 44.86% LTV
Estimated Hold Period: 7 Years
Key Features
1031 Exchange: Yes
721 Exchange/UPREIT: Yes; Investor Option
Cash-Out Refinance: No
Income Guarantee: No
Distribution Forecast
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Investor Cash Flow | 4.28% | 4.27% | 4.49% | 4.82% | 5.15% | 5.39% | 5.63% | 5.87% | 6.11% | 6.33% |
Sponsor Overview
Bluerock is a leading institutional alternative asset manager based in New York with regional offices across the U.S. Bluerock principals have a collective 100+ years of investing experience with more than $120 billion real estate and capital markets experience and manage multiple well-recognized real estate private and public company platforms. Today, Bluerock has more than $19 billion in acquired and managed assets and offers a complementary suite of public and private investment programs, with both short and long-term goals, to individual investors seeking solutions aimed at providing predictable income, capital growth, and tax benefits.
Strong Historical Performance: 23.9% Annualized Return, 2.1x Equity Multiple, $19.5B+ Assets Under Management