Bluerock: BR Skytop Multifamily DST
Investment Overview
Skytop represents the opportunity to invest in an ultra-luxury, class A+ mid-rise apartment community located in the sought-after Anderson Township submarket in thriving Cincinnati, Ohio.
The Property provides coveted access to large employment hubs including Cincinnati’s central business district, home to 160,000 jobs and headquarters to five Fortune 500 companies.
Instant value creation: the Property was purchased for $700,000 below appraised value.
Attractive rental rate growth upside potential: with current rents more than $425 per month below the average competitor, plus 23% forecasted rent growth in the submarket through Q2 2030, providing significant opportunity for future value creation.
Highly desired tenant demographics, with an average household income of more than $87,000, providing for an average income-to-rent ratio of 4.1x, and located in an affluent neighborhood with greater than $155,000 average household income in the three-mile radius.
Offering Strengths
New build (2024) with relatively low competition in the surrounding area. Higher yield projections and a tax abatement in place could help the distributions in the initial years.
Offering Weaknesses
Located in secondary midwest market.
Key Facts
Sponsor: Bluerock
Structure: Delaware Statutory Trust (DST)
Location(s): Ohio
Property Type(s): Multifamily
Assumable Loan: 55.88% 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 | 4.77% | 4.72% | 5.14% | 5.66% | 5.86% | 6.21% | 6.54% | 6.86% | 7.24% | 7.71% |
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