Offering summary
BR Parkview Multifamily DST is a Delaware Statutory Trust offering sponsored by Bluerock Value Exchange (BVEX) to acquire a 264-unit, Class A apartment community located at 5141 Stone Mountain Highway in Stone Mountain, Georgia. Completed in 2023, the property was acquired for an acquisition price of $66,600,000, representing a $1,500,000 discount to its appraised value, within a total offering price of $78,111,498. The capitalization structure comprises $39,486,498 in equity and $38,625,000 in fixed-rate debt, reflecting an offering LTV of 49.45%. Financing terms feature a 10-year term at a fixed interest rate of 5.18% with an initial debt service coverage ratio (DSCR) of 1.91x. The offering projects an initial Year 1 income distribution of 4.4% and an average full-term distribution of 4.55%, supported by an entry cap rate of 5.81%. Front-end capitalization also funds substantial reserves, including $2,000,000 in Master Tenant reserves and $2,355,600 in improvement reserves.
Capital raise
0.0% of the offering is closed
$39,486,498 still available
$39,486,498
$0
0.0% of offering$0
Pending subscription$39,486,498
Open for subscriptionThe offering is raising $39,486,498 in DST investor equity alongside $38,625,000 in fixed-rate debt financing. The syndication structure incorporates up to 6.0% in selling commissions, a dealer fee of $552,811, and due diligence and marketing allowances totaling $987,162. Equity proceeds fully fund transaction closing costs, financing expenses, and $4,666,071 in aggregate upfront reserves.
Offering terms
Sector
Apartment community
Investment Category
DST
Projected First Year Cashflow
4.4%
Avg. 4.55% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$78,111,498
$295,877 per unit
Offering Debt
$38,625,000
5.18% · 10-year Term
LTV
49.45%
On acquisition price
Units / Tenants
264
5141 STONE MOUNTAIN HIGHWAY, STONE MOUNTAIN, GEORGIA 30087
Property Age
The property was completed in 2023, making it a newly built Class A apartment community.
The offering features a newly constructed 2023-vintage, 264-unit Class A multifamily asset in Stone Mountain, Georgia. It utilizes moderate leverage with a 49.45% LTV, a fixed 5.18% interest rate, and a 1.91x DSCR. Upfront capitalization funds over $4.6 million across Master Tenant, capital improvement, and lender reserves.
Strengths & considerations
Key strengths
Moderate Leverage & Strong Coverage
49.45% LTV / 1.91x DSCRThe debt structure provides conservative 49.45% leverage with a strong 1.91x debt service coverage ratio at a 5.18% fixed rate for 10 years.
New Construction Vintage
2023 ConstructionThe 264-unit Class A asset was completed in 2023, minimizing immediate capital expenditure requirements and deferred maintenance friction.
Substantial Reserve Capitalization
$4,666,071 in Total ReservesCapitalization includes $2,000,000 in Master Tenant reserves, $2,355,600 in improvement reserves, and $310,471 in lender-required reserves.
Key considerations
Syndication Load & Front-End Fees
9.45% Upfront Fee / Acq CostTotal front-end offering expenses and fees equal $3,731,474, contributing to an overall gross offering price markup above base purchase price.
Yield Maintenance Prepayment Penalty
114 Months Lockout/YMThe 10-year loan requires yield maintenance prepayment penalties for the first 114 months, limiting refinance or early disposition flexibility.
Moderate Initial Cash-on-Cash Return
4.4% Yr 1 / 4.55% AvgProjected income distributions start at 4.4% in Year 1 and average 4.55% across the full term relative to the 5.81% property cap rate.
Key transaction strengths include a conservative 49.45% LTV paired with a robust 1.91x DSCR on a 10-year fixed debt structure. The 2023 construction vintage minimizes near-term structural deferred maintenance, bolstered by $2,355,600 in improvement reserves. Additionally, the asset was acquired at a 5.81% cap rate and priced $1,500,000 below its appraised value.
Sources, uses & fee assessment
Capital Sources
- $39.49M
Offering Equity
50.6% of offering
- $38.63M
Offering Debt
49.45% LTV on acq.
Where the Capital Goes
- $71.82M
Acquisition Cost
91.9% of offering
- $3.73M
Offering Expenses
4.8% of offering
- $4.67M
Reserves
6.0% of offering
Total Offering
$78.11M
Equity $39.49M + debt $38.63M
Acquisition Cost
$71.82M
91.9% of offering to the property
Total Fees & Expenses
$3.73M
6.00% of offering
Reserves
$4.67M
6.0% of offering
Sources consist of $39,486,498 in equity and $38,625,000 in debt for total proceeds of $78,111,498. Uses comprise the $66,600,000 purchase price, $3,731,474 in front-end fees/expenses, $1,516,912 in finance expenses, $1,035,162 in carry costs, and $4,666,071 in aggregate reserves.
Risk read
Tone reflects relative strength, not a rating
Leverage & Debt Structure
FavorableLeverage is conservative at 49.45% LTV with fixed 5.18% interest and strong 1.91x DSCR for 10 years.
Prepayment Flexibility
RestrictiveLoan carries yield maintenance penalty for the first 114 months, creating heavy exit friction prior to month 117.
Syndication Load
ElevatedTotal upfront fees and offering expenses of $3,731,474 add 9.45% in frictional load relative to the $66.6M purchase price.
Asset Condition & Reserves
Strong2023 construction complemented by $4,666,071 in aggregate funded reserves provides substantial operating buffer.
Primary underwriting considerations include a total offering price markup of $11,511,498 (17.28% over base purchase price) driven by front-end transaction fees, carrying costs, and reserves. Debt flexibility is restricted by yield maintenance prepayment penalties during the first 114 months of the 10-year loan term. Additionally, initial Year 1 cash flow distribution is modest at 4.4%, with ongoing distributions subject to master tenant lease mechanics.
Calculated underwriting metrics
Syndicated Cap Rate
5.81%
NOI ÷ offering price
Upfront Load on Offering
6.00%
Total fees ÷ offering price
Load on Equity
9.45%
Total fees ÷ offering equity
Premium / Discount
41%
Offering price vs. appraised value
Offering vs. Acquisition
117.3%
Offering price ÷ acquisition price
Price per Unit
$295,877
Offering price ÷ 264 units
Total offering equity of $39,486,498 and debt of $38,625,000 equate to a total offering price of $78,111,498 against the $66,600,000 acquisition price. Total front-end offering expenses and fees equal $3,731,474, representing an upfront fee load of 9.45% of acquisition cost. Initial distributions start at 4.4% in Year 1, averaging 4.55% across the full 10-year holding term.
Sponsor
Sponsor
BVEX
Bluerock Value Exchange (BVEX) is an experienced national sponsor of 1031 exchange offerings managing residential and industrial assets. Supported by Bluerock's $20 billion in AUM and principals with over $120 billion in real estate transactions, the firm demonstrates deep institutional scale.
—
Properties owned or managed
$20,000,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
The nearby Stone Mountain Amazon Fulfillment Center employs approximately 1,000 people.
Disclosed headcount
apartment community
Stated strategy
Bluerock Value Exchange (BVEX) acts as the sponsor, backed by Bluerock's $20,000,000,000 in assets under management. The firm's principals possess over 100 years of collective real estate experience across more than $120 billion in transactions. BVEX is an active national sponsor in the syndicated Section 1031 Exchange marketplace.