REAL ESTATE INVESTMENT
Capital Square | June 07, 2022
Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced the acquisition of Village at Westland Cove, a Class A, 240-unit multifamily community in Knoxville, Tennessee. The community was acquired on behalf of CS1031 Village of Westland Cove Apartments, DST.
This is Capital Square's sixth acquisition of a multifamily community in Tennessee for the DST/1031 exchange program. Village at Westland Cove is located in one of the hottest housing markets in the nation for 2021.1 Employment in the area is exceptionally strong, with the Oak Ridge Reservation and National Laboratory, operated by the U.S. Department of Energy, only 19 miles away, generating 14,667 full-time jobs and wages totaling over $1.3 billion."
Louis Rogers founder and chief executive officer of Capital Square
Completed in 2019, Village at Westland Cove is located at 9635 Westland Cove Way along Interstate 140. The 28.2-acre luxury multifamily community sits on the shore of scenic Fort Loudoun Lake. It offers one-, two- and three-bedroom units averaging 1,147 square feet with best-in-class amenities. The community features include a state-of-the-art fitness center, Amazon lockers and coolers for grocery deliveries, car care center, two pet play areas, coffee bar, business center, food truck nights, gaming patio with bocce ball court, outdoor firepit, outdoor kitchen, club house, swimming pool, kayaks available to residents, as well as lake access via a resident dock.
Village at Westland Cove is located within close proximity of The Pinnacle at Turkey Creek, a 650,000-square-foot shopping center that includes more than 65 retail stores and restaurants. The property is in the 10th hottest housing market in the country for 2021,1 with a 5-year value increase of 55%, according to Zillow Group. Turkey Creek Medical Center, a Level III trauma center that is part of Tennova Healthcare, lies within two miles of the property. Situated further along the I-140 and I-40 are attractions such as Knoxville Museum of Art, Market Square and Zoo Knoxville.
The Oak Ridge Reservation, operated by the U.S. Department of Energy and home to Oak Ridge National Laboratory, is approximately 19 miles from the Village at Westland Cove and is the largest employer in the area. According to the East Tennessee Economic Council, approximately 14,667 full-time jobs were directly provided by the DOE and its major contractors within Tennessee in 2020, with annual wages and salaries totaling nearly $1.311 billion.2 WBIR.com reports that Bill Lee, Tennessee's governor, recently announced a $72 million budget for the UT-Oak Ridge Innovation Institute, a collaboration between the University of Tennessee and Oak Ridge National Laboratory, in a bid to attract and maintain science, technology, engineering and mathematics (STEM) talent in the Knoxville area.3
"Village at Westland Cove is an exceptional multifamily property located in an idyllic setting with luxury amenities throughout," said Whitson Huffman, chief strategy and investment officer. "The local economy is thriving, with low unemployment, high average household income and growing demand for high-end apartment living such as that provided to the residents of Village at Westland Cove."
Data from Esri shows the average household income within a three-mile radius of the property reaches approximately $130,000. According to Yardi Matrix, Knoxville's rental rates are rising along with demand, with 18% year-over-year rent growth and 98.1% average occupancy as of March 31, 2022.
The Bureau of Labor Statistics reports that Knoxville witnessed an increase of over 19,000 job opportunities since February 2021, with unemployment rates reaching 2.8%. According to the BLS, job opportunities in the area should continue to grow with 3M Company announcing plans to invest approximately $470 million to expand their manufacturing facility in the Knoxville MSA, creating 600 new jobs by 2025.4
Taylor Bird, Nelson Abels, Robert Stickel, and Alex Brown of Cushman & Wakefield represented the seller.
Bird, executive director of Cushman & Wakefield, noted, "The Village at Westland Cove offers a truly unique asset coupled with an unrivaled amenity package, interior finishes and beautiful water views."
CS1031 Village of Westland Cove, DST seeks to raise $52.8 million in equity from accredited investors and has a minimum investment requirement of $50,000.
Since its founding in 2012, Capital Square has acquired 146 real estate assets for approximately 6,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation.
About Capital Square
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of multifamily properties in the southeastern US, with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $5.6 billion in transaction volume. Capital Square's executive team has decades of experience in real estate investments. Capital Square's related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and their "Fantastic 50" reports in 2019 and 2020.
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MARKET OUTLOOK
MRI Software | August 08, 2022
MRI Software, a global leader in real estate software, has acquired ApartmentData.com, further expanding its MRI Living™ suite of property management solutions for the multifamily market. ApartmentData.com is a Houston-based provider of market research and data solutions that enable multifamily property owners and managers to increase property values by optimizing pricing and occupancy.
Founded in 1986, the company provides comprehensive and accurate information on professionally managed properties with more than 50 units, including pricing, concessions, occupancy, amenities, and policies at the floor plan level. The company serves 12 of the fastest-growing metropolitan statistical areas ("MSAs") in the U.S.: Houston, Dallas/Fort Worth, Austin, San Antonio, Atlanta, Phoenix/Tucson, Nashville, Raleigh/Durham, Charlotte, Orlando, Tampa, and Jacksonville. ApartmentData.com supplements its digital collection techniques with direct calling and client communications, helping ensure the highest levels of data accuracy and detail.
ApartmentData.com's flagship solution, Competition RADAR™, leverages proprietary algorithms to identify and alert users to relevant competitive trends, provide pricing recommendations, and calculate property- or portfolio-level impact.
"Over the last several years, we've significantly expanded our MRI Living portfolio to provide tools that make our clients' lives easier and help them take better care of their residents, businesses, and themselves, Data is critical to helping us deliver on those objectives. With a 'smart data' solution like Competition RADAR, we can provide clients with actionable data and market insights, so they can navigate the future with confidence and gain a competitive advantage."
-John Ensign, MRI's president and executive managing director, North America
In addition to deepening MRI's footprint in the southern U.S., the acquisition enhances the company's MRI Living suite, an already extensive portfolio of multifamily solutions that empower property owners and operators with AI-first tools to easily manage every part of the residential lifecycle, from lead to lease to renewal.
We're thrilled to join the MRI family, Thanks to this acquisition, both our and MRI's clients will be able to take advantage of new and expanded capabilities, which will help them manage real estate portfolios more effectively and profitably. They won't have to wade through specialty providers who require customers to perform their own analysis. Instead, our clients will enjoy access to the combined resources of two well-established players,says Rudy Mui, chief executive officer of ApartmentData.com.
John Severance, founder and chief technology officer of ApartmentData.com, looks forward to what he describes as "the next chapter." He states: By leveraging the resources of MRI, we can more easily address the growing demand for insights at a time when most multifamily organizations need to drive occupancy and maximize revenue.
Today, MRI serves more than 82% of companies on the National Multifamily Housing Council's (NMHC) list of top 50 U.S. apartment managers. Additionally, MRI solutions support more than 20 million residential units worldwide.
MRI will continue to serve ApartmentData.com clients without interruption. Silvermark Partners served as the exclusive advisor to Apartment Data.com.
About MRI Software
MRI Software is a leading provider of real estate software solutions that transform the way communities live, work and play. MRI's open and connected, AI-first platform empowers owners, operators and occupiers in commercial and residential property organizations to innovate in rapidly changing markets. MRI has been a trailblazer in the PropTech industry for over five decades, serving more than two million users worldwide. Through innovative solutions and a rich partner ecosystem, MRI gives real estate companies the freedom to realize their vision of building thriving communities and stronger businesses.
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REAL ESTATE TECHNOLOGY
Bluerock Residential Growth REIT, Inc. | May 15, 2022
Bluerock Residential Growth REIT, Inc. announced that its Board of Directors has authorized and the Company has declared a monthly cash dividend on the Company's Series B Redeemable Preferred Stock (the Series B Preferred Stock) for the month of May 2022, equal to a quarterly rate of $15.00 per share (the Series B Preferred Dividends). In addition, the Board of Directors has authorized and the Company has declared a monthly cash dividend on the Company's Series T Redeemable Preferred Stock (the Series T Preferred Stock) for the month of May 2022, equal to a quarterly rate of $0.384375 per share (the Series T Preferred Dividends).
The Series B Preferred Dividends will be payable in cash as follows: $5.00 per share to be paid on Friday, June 3, 2022 to Series B Preferred stockholders of record as of Wednesday, May 25, 2022.
The Series T Preferred Dividends will be payable in cash as follows: $0.128125 per share to be paid on Friday, June 3, 2022 to Series T Preferred stockholders of record as of Wednesday, May 25, 2022. Shares of Series T Preferred Stock held for only a portion of the applicable monthly dividend period will receive a prorated Series T Preferred Dividend based on the actual number of days in the applicable dividend period during which each such share of Series T Preferred Stock was outstanding, as permitted under the Articles Supplementary to the Company's charter dated November 13, 2019.
About Bluerock Residential Growth REIT, Inc.
Bluerock Residential Growth REIT, Inc is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. The Company's objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value-add improvements to properties and to operations. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
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