New York-based Bluerock Real Estate paid $65 million this week to buy The Gate apartments in downtown ChampionsGate village.
The Class-A, 308-unit complex was built in 2017 by Investors Realty. Chris Fiscelli, Bluerock's director of investment research, told GrowthSpotter the 5-story, urban-style apartment community is unique in the Four Corners market.
"We like the fact that even though it's deep surburban, it's really walkable," he said. "You've got Publix right across the street and there's five or six restaurants within walking distance. You have most everything you need right there."
It was the firm's third multifamily acquisition in the Four Corners area, following the $67.5 million purchase last year of the Grand at Westside apartments.
"We really like that submarket. We have other assets there that are performing well," Fiscelli said. "There's a lot of growth that's being driven by Disney and other theme parks and resorts."
Bluerock sourced a $4.5 million loan from Keybank National.
Fiscelli said the purchasing entity, BR Gate DST, is a trust is designed to sell shares to individual investors who are looking to place funds in a 1031 Exchange. The minimum investment is $100,000.
"We think the value add is for our DST program," Fiscelli said. "The main goals are capitalization and stable income. We think the value add isn't so much in the property itself, because it's so new. Occupancy is very high, and that gives you more rent growth over time."
Bluerock Value Exchange sold out of its Grand at Westside DST in October. The offering was fully subscribed for nearly $33 million in capital in less than 90 days.