USA Platform
Bluenose has participated in over 15 U.S. investments spread across five states: Connecticut (Fairfield), Massachusetts (Boston), Georgia (Atlanta), North Carolina (Charleston) and Texas (Houston, San Antonio). The development portion of Bluenose’s U.S. portfolio ranges from self-storage, to large-scale student residences, rental properties and mixed-use residential. For many of these investments, Bluenose has several investment vehicles in the United States, the largest of which is an international investment syndicate led by the Boston-based group ELV. A secondary aspect of Bluenose’s U.S. development platform is investing in under-market value garden-style rental complexes, upgrading those properties, reducing vacancy, raising rents, and then repositioning the property for sale.
SQ5 at Georgia Tech
Located in Midtown, Atlanta near Georgia Tech, this 505-bed, 25-storey student residence was completed summer 2015. The rental tower was completely occupied by September 2015 (the beginning of Georgia Tech’s school year) and has been at maximum capacity since its completion. The fully furnished, upscale units feature common living rooms, and private bedrooms each with its own four-piece en suite. After a 4.5-year holding period, SQ5 was sold in Q3-2018, generating a 44.4% IRR.
Inman Quarter
This mixed-use Atlanta, Georgia development saw the construction of 202 rental apartments (90% leased at above pro forma rates prior to completion), 39,000-square feet of ground-floor retail space (which was 85% leased prior to completion), and a 570-space parking garage. The project, located in Atlanta’s upscale Inman Park neighbourhood, was completed and sold in May 2015, generating a 38% IRR.
Caroline
Caroline is a mixed-use project in the Charleston, South Carolina’s Innovation District. This is the first of three planned development phases within the 50‐acre West Edge Innovation District. The property overlooks Brittlebank Park on the Ashley River and located within close proximity to the Medical University of South Carolina, the College of Charleston and the Citadel. Completed early 2019, Caroline is comprised of 237 rental apartments and a 18,500 square feet of ground‐floor retail space. With construction completed and occupancy stabilization approaching, capital market options are being evaluated.
ROLLING GREEN
In Q2-2017, Bluenose invested in the purchase of a 304-unit apartment complex in Milford, Massachusetts. The 1970-built complex was rundown and purchased substantially below replacement cost in a supply-constrained locale. Bluenose’s partner PhilMor Real Estate Investments replaced the existing management and began large-scale investments into improving the facility; capital expenditures have included the rolling renovations of units and improvements made to the grounds, which previously lacked curb appeal. These improvements, along with an active rental management team, have yielded substantially higher rents.
