Bluerock Capital Markets Announces Monthly Record Capital Inflows in March of $150 Million; Company Focusing on Virtual Relationship Management and Heightened Communication During COVID-19 Uncertainties
New York, NY (April 9, 2020) – Bluerock Capital Markets, LLC (“BCM” or “Company”), a distributor of institutional alternative investment products, and the dedicated dealer manager for Bluerock Real Estate (“Bluerock”), announced today a new monthly record capital raise of approximately $150 million in the month of March; a 23% increase over the same period last year. The Company reported total capital inflows for the quarter of approximately $396 million.
The record capital inflows were driven by robust sales amongst all of Bluerock’s current investment programs which includes the Bluerock Total Income+ Real Estate Fund (TI+), the Bluerock Residential Growth REIT’s Non-Traded Series T Preferred Stock (BRG Series T), with a new monthly record of capital inflows in March of more than $28.5 million, and Bluerock Value Exchange’s 1031 exchange programs.
In response to COVID-19 and all the uncertainties, Bluerock reports that all of its offices across the country and staff are abiding by local and state protective measures including mandatory “Work From Home” policies and strict limits on non-essential travel, as part of their commitment to help flatten the curve and impact of the pandemic in their local communities. In addition, the Company has ramped up its email communication and executive management delivered webinars to advisors providing perspectives on the impact of COVID-19 on the real estate markets and Bluerock’s investment programs and has emphasized virtual relationship management as paramount for BCM to be highly accessible and responsive to advisor inquiries.
“First, we are extremely appreciative and honored by the continued support and trust from our advisors in these difficult and uncertain times. The record inflows we received in March are testament to our selling groups’ recognition of the Bluerock mantra of providing income focused, capital preservation oriented investment solutions with low correlation to broader markets”, said Jeffrey Schwaber, CEO of Bluerock Capital Markets. “Our 50+ capital markets professionals, including external and internal wholesalers, are working in unison to provide our valued advisors and broker dealers with timely and relevant information related to all of our investment programs to help them make sound investment decisions and address their client’s questions and concerns during these turbulent times. During times like these, advisors and investors seek price stability and attractive current income and our investment funds are designed to provide both”, added Schwaber.
Bluerock is a leading institutional alternative asset manager with approximately $8 billion of owned, managed, and sponsored assets and headquartered in Manhattan with regional offices across the U.S. Bluerock principals have a collective 100+ years of investing experience, have been involved with over $13 billion in investments, and have helped launch leading private and public company platforms.
A summary of Bluerock’s three distinct investment programs include:
About the Bluerock Total Income+ Real Estate Fund
The Bluerock Total Income+ Real Estate Fund offers individual investors access to a portfolio of institutional real estate securities managed by best-in-class fund managers with more than $200 Billion of underlying gross asset value and 4,000+ properties. The Fund’s primary investment objective is to generate current income while secondarily seeking long-term capital appreciation with low to moderate volatility and low correlation to the broader markets. The Fund utilizes an exclusive partnership with Mercer Investment Management, Inc., the world’s leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, with over 3,300 clients worldwide, and $15 trillion in assets under advisement.
About Bluerock Residential Growth REIT
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. BRG’s objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value-add improvements to properties and operations. BRG reports assets in excess of $2.3 billion and more than 15,000 apartment units. BRG’s common stock is included in the Russell 2000 and Russell 3000 Indexes. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
About Bluerock Value Exchange
Bluerock Value Exchange is a national sponsor of syndicated 1031-exchange offerings with a focus on Premier Exchange Properties™ that seek to deliver stable cash flows and potential for value creation. Bluerock has structured 1031 exchanges on approximately $1.9 billion in total property value and 10 million square feet of property. With capacity across nearly all real estate sectors and the ability to customize transactions for individual investors, BVEX is available to create programs to accommodate a wide range of tax requirements.
Bluerock Residential Growth REIT’s Series T Preferred Stock and Bluerock Value Exchange’s programs are offered by Bluerock Capital Markets, LLC. The Bluerock Total Income+ Real Estate Fund is distributed by ALPS Distributors Inc. Bluerock Capital Markets, LLC is not affiliated with Alps Distributors, Inc. or Mercer Investment Management, Inc.
Bluerock Total Income+ Real Estate Fund
Investing in the Bluerock Total Income+ Real Estate Fund involves risks, including the loss of principal. The Fund intends to make investments in multiple real estate securities that may subject the Fund to additional fees and expenses, including management and performance fees, which could negatively affect returns and could expose the Fund to additional risk, including lack of control, as further described in the prospectus. The Fund’s distribution policy is to make quarterly distributions to shareholders. The level of quarterly distributions (including any return of capital) is not fixed and this distribution policy is subject to change. Shareholders should not assume that the source of a distribution from the Fund is net profit. A portion of the distributions consist of a return of capital based on the character of the distributions received from the underlying holdings, primarily Real Estate Investment Trusts. The final determination of the source and tax characteristics of all distributions will be made after the end of each year. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. There is no assurance that the Company will continue to declare distributions or that they will continue at these rates. There can be no assurance that any investment will be effective in achieving the Fund’s investment objectives, delivering positive returns or avoiding losses.
Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the Fund’s shares outstanding at net asset value. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s net asset value.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Bluerock Total Income+ Real Estate Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained online at bluerockfunds.com. The Bluerock Total Income+ Real Estate Fund is distributed by ALPS, Inc. The prospectus should be read carefully before investing. Bluerock Fund Advisor, LLC is not affiliated with ALPS, Inc.
Bluerock Residential Growth REIT
The discussion of BRG securities herein relates solely to BRG’s Series T Redeemable Preferred Stock, non-traded securities of BRG which have not been listed on any national exchange. The risks and rewards of investing in the Series T Preferred Stock are separate and distinct from an investment in BRG’s common stock listed on the NYSE American. This is neither an offer to sell nor a solicitation of an offer to buy any securities. An offering is made only by the prospectus. Any prospective investor must be read the prospectus in order to understand fully all of the implications and risks of the Series T Preferred Stock.