Full cycle

BR Clearwater, DST Sold Its Clearwater, Florida Apartment Community on August 8, 2022

Bluerock Value Exchange reported the sale as one of five Delaware Statutory Trust (DST) programs completed in a single announcement, the only public account of what the exit produced.

Published Updated

BR Clearwater, DST reached Full Cycle with the sale of the Clearwater, Florida apartment community it was formed to hold, on August 8, 2022. Bluerock Value Exchange reported the disposition in an announcement covering five DST 1031 exchange programs. The Sponsor named on the Trust's Form D is BR Clearwater DST Manager.

Everything known about the result comes from that one document. The Trust's securities filings carry no performance figures, so the sponsor's numbers can be reported and cited but not set against a filing. The same figures appear again in the sponsor's track record exhibit in the private placement memorandum for BR Industrial Portfolio II DST, a later program, drawn from the same source rather than an independent one.

The offering file is short. The Trust's first Form D, filed September 30, 2015, discloses a 506(b) offering and its size. No private placement memorandum for BR Clearwater, DST was filed publicly, so the cash flow terms the offering set out to investors are not on the record.

Item

Figure

Offering ceiling, first Form D

$19,113,038

Minimum investment

$225,000

Sale price

$66.9 million, as reported by the sponsor in its full-cycle announcement

Equity multiple

2.26x, as reported by the sponsor in that announcement

Average annual return

18.4%, as reported by the sponsor in that announcement

Hold period

6.8 years, as reported by the sponsor in that announcement

A per-program net return figure for the Trust is not in the record, and where the sponsor's stated hold begins is not stated either. Measured from the Form D to the sale, the span is 6.9 years. This report uses the filing-to-sale measure, because both of its endpoints are fixed by dated documents.

Top1031 counts seven earlier Full Cycle dispositions on the sponsor's record. BR Clearwater, DST is the eighth.