In August, Bluerock reported that the company and its external manager, BRG Manager, LLC entered into a definitive agreement to internalize the external management function currently performed by BRG Manager.

The transaction provides for the internalization of the external management of the company and the direct employment of the manager's existing management team and certain other employees. The consideration is expected to be approximately $41 million to $42 million. The proposed transaction is expected to close promptly after the company's annual meeting of stockholders, currently scheduled for Oct. 26, 2017, and must close on or before Feb. 3, 2018.

The REIT, whose multifamily portfolio is located primarily in the Southeastern United States, acquired the 384-unit multifamily Villages of Cypress Creek Apartments in Houston, TX in late September.

BRG purchased an 80% interest in the Cypress Creek complex in an off-market transaction with an equity investment of $14.5 million and financed the remainder with a fixed-rate loan of $26.2 million. The company is spending $2 million to upgrade units and common spaces and projects the acquisition will yield a pro-forma stabilized cap rate of nearly 7%.

NEW YORK CITY—Bluerock Residential Growth REIT, Inc. has secured its first credit facility valued at $150 million that also includes an accordion feature that increases the firm's buying capacity to up to $250 million.

The New York City-headquartered company states it plans to utilize the facility to fund future acquisitions, including two properties, which are currently under agreement and are expected to close in the fourth quarter of 2017.

KeyBanc Capital Markets, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and JPMorgan Chase Bank, N.A. acted as co-lead arrangers and book managers, with KeyBank National Association as administrative agent. Merrill Lynch, Pierce, Fenner & Smith Incorporated and JPMorgan Chase Bank, N.A. acted as co-syndication agents.

“We are pleased to implement our first credit facility, which along with our proposed internalization, is a major step forward as we enter into our next phase of growth,” says Ramin Kamfar, Bluerock's chairman and CEO. “The facility will provide us with added financial flexibility and more efficient cash management, which we expect will have a positive impact on our recurring AFFO.”

In August, Bluerock reported that the company and its external manager, BRG Manager, LLC entered into a definitive agreement to internalize the external management function currently performed by BRG Manager.

The transaction provides for the internalization of the external management of the company and the direct employment of the manager's existing management team and certain other employees. The consideration is expected to be approximately $41 million to $42 million. The proposed transaction is expected to close promptly after the company's annual meeting of stockholders, currently scheduled for Oct. 26, 2017, and must close on or before Feb. 3, 2018.

The REIT, whose multifamily portfolio is located primarily in the Southeastern United States, acquired the 384-unit multifamily Villages of Cypress Creek Apartments in Houston, TX in late September.

BRG purchased an 80% interest in the Cypress Creek complex in an off-market transaction with an equity investment of $14.5 million and financed the remainder with a fixed-rate loan of $26.2 million. The company is spending $2 million to upgrade units and common spaces and projects the acquisition will yield a pro-forma stabilized cap rate of nearly 7%.