Bluerock Residential takes stake in Orlando development

|About: Bluerock Residential Gro... (BRG)|By:, SA News Editor

Bluerock Residential (BRG +0.3%) closes a preferred equity investment in a 296-unit Class A apartment community in Orlando. The company expects to invest up to $4M of preferred equity in the deal, with the ability to convert into common equity once the development is stabilized.

By converting land previously designated for office use to residential use, Bluerock was able to achieve a below-market land basis, allowing a $10K-$15K per unit cost advantage, says CEO Ramin Kamfar.