Bluerock Churchill Downs DST

Bluerock: Churchill Downs DST

Limited Availability

Overview
Features
Income
Analysis

Overview

Churchill Downs 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 Sponsor, Bluerock, seeks to provide its Beneficial Owners with monthly cash flow and the potential for appreciation driven by economic and population growth as well as the opportunity to significantly grow rents through a targeted value-add / upgrade program.

Offering Materials

Key Investment Features

Structure

Delaware Statutory Trust (DST)

Investment Sponsor

Bluerock

Property Type(s)

Multifamily

Location(s)

NC

Occupancy

91%

721 Exchange / UPREIT

Optional

Minimum Investment

$100,000

Investment Strategy

Some Value Add

Year 1 Yield

4.28%

In-Place Loan

44.86% LTV

Avg. Remaining Lease Term

N/A

Cash Flow Forecast

Year 1

Year 2

Year 3

Year 4

4.28%

4.27%

4.49%

4.82%

Year 5

Year 6

Year 7

Year 8

5.15%

5.39%

5.63%

5.87%

Year 9

Year 10

6.11%

6.33%

Investment Highlights

  • The Trust intends to update the Property by upgrading and improving the exterior landscape and signage, installing washers and dryers in all units and the implementing light interior unit upgrades to the Property’s select classic (original) finishes to capture rent premiums and drive increased Property revenues and value.

  • The Property is highly visible within the area, located adjacent to US Route 501, US Route 1, and State Route 27, the main thoroughfares in the Pinehurst Metro, which see approximately 10,000 vehicles per day.

  • The median household income for the metropolitan area is projected to grow by 2.50% annually, increasing the median household income to $98,511 by 2029.

Advantages

  • 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.

Weaknesses

  • Micro market in the middle of NC with no nearby colleges or significant job centers.

  • Much older property than typical DST apartment community.

  • UPREIT has poor track record and FMV cash option is costly. BR is underperforming with multiple recent apartment DSTs.