Blue Rock Takes Control of $700M Worth of MF

Downtown Orlando

ORLANDO— Blue Rock Premier Properties, a newly-formed investment company in Tampa, FL, has acquired control and management of a $700 million multifamily portfolio in Florida. The multifamily portfolio includes 29 assets spanning over 8,000 units from Blue Rock Partners . “Blue Rock Premier Properties is aggressively pursuing select value-add product throughout Florida, with as many as 3,000 units in the pipeline for 2016 and beyond,” says Randy Ferreira , principal and owner of Blue Rock. In fact, the firm has already started, snapping up $48 million, 532-unit multifamily portfolio in Jacksonville, FL. According to Ferreira’s research, Blue Rock’s four current target markets rank among the nation’s top regions for annual rent growth and employment outlook. Averaging 95% occupancy, Blue Rock’s latest multifamily acquisition includes the 284-unit Landmark at Hampshire Place and the 248-unit Landmark at Sage Commons. Blue Rock will rebrand the communities as The Park at Potenza and The Park at Trapani, respectively. The company will invest $3.4 million to upgrade the multifamily communities. Wells Fargo provided debt financing for the purchase. “Now owning and managing 30 communities in Tampa, Orlando, Jacksonville and Fort Myers, Blue Rock Premier Properties is taking the popular ‘Blue Rock Lifestyle’ to the next level by offering premier club-style apartment living and amenities,” “Our separate Jacksonville purchase is also significant in that it builds our stake in that fast-growing market, having earlier purchased a $64.8 million, 1,040-unit portfolio there in October 2015. The Jacksonville market will continue to be a major focus for us in 2016 and beyond, as will the Tampa, Orlando and Fort Myers markets and others.”   Blue Rock Premier Properties is a led by original Blue Rock Partners founder Ferreira, with longtime partner Konover South . Konover is a fully integrated acquisition, development and management company operating throughout the southeastern United States. The question is, can Blue Rock keep up the investment pace?   “Class A caps were driven down to 3% to 6% in most markets leaving investors seeking stronger returns in outlying markets where there had previously been less competition,” Kurt Westfield , managing director of WC Companies, tells GlobeSt.com. As for 2016, he expects just as much investment if not more.   “Major economic drivers have maintained a strong presence from leveraged and financed investors and cash sales still make up an above-average chunk of the investment-class assets being purchased,” Westfield says. “Property values have risen, dramatically in our local market, amongst most major metro regions nationwide and rental rates continue to rise, promoting strong investment opportunities across the board in the multifamily sector.”