Bluerock Reports Record Capital Raise of Over $75 Million for the Month of August; Continues Its Rapid Rise Among Top Sponsors Within Direct Investment Industry

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Sep 11, 2018, 06:30 ET

NEW YORK, Sept. 11, 2018 /PRNewswire/ -- Bluerock Capital Markets, LLC (the "Company"), a distributor of institutional alternative investment products, and the dedicated dealer manager for Bluerock Real Estate ("Bluerock"), announced today that it accomplished another record capital raise of over $75 million across all major business units for the month of August. The Company reported that a key contributor to this substantial growth in sales is Bluerock's flagship '40 Act Fund, Total Income+ Real Estate Fund, which reported sales of over $56 million for the month of August; setting a new record, which represents a 15% increase from its previous record capital raise attained in May.

Based on sales information obtained from industry third-parties, the Company also reports ranking as one of the Top 4 Sponsors within the Direct Investment Industry in new capital raised year-to-date through August and continues to be one of the fastest-growing distributors of real estate-related direct investment products marketed through broker-dealers and registered investment advisors^†.

"In the investment management industry, it is well known that capital follows performance. Bluerock's consistent and substantial increases in equity capital flows and AUM is clear corroboration that our conservative institutional approach toward providing investors access to best-in-class institutional managers and funds with a focus on income generation and growth is resonating in the marketplace", said Jeffrey S. Schwaber, CEO of Bluerock Capital Markets.

Capital raised for Bluerock's direct investment product suite is up nearly 30% year-to-date through August 2018 as compared to the same period in 2017, which represented a nearly 40% increase in equity capital raise as compared to the same period in 2016, a breakout record for such period. The Company reports robust equity raises across all three of its product lines, which includes:

Bluerock's Total Income+ Real Estate Fund (NASDAQ: TIPRX, TIPPX, TIPWX, TIPLX), a non-diversified closed-end interval fund, that provides individual investors with access to private, institutional real estate securities, enabling them to invest alongside large pensions and endowments without the high minimums;
Bluerock Residential Growth REIT (NYSE American: BRG) Series B Preferred stock designed to deliver stability of current income and pricing plus potential capital appreciation with investments in the multifamily sector; and
Bluerock Value Exchange 1031 like-kind exchanges that seeks to provide investors with tax deferral, current income and potential capital appreciation.

About Total Income+ Real Estate Fund
Bluerock's The Total Income+ Real Estate Fund offers individual investors access to a portfolio of institutional real estate securities managed by top-ranked fund managers. 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 $11 trillion in assets under advisement.

About Bluerock Residential Growth REIT
Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) 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. The Company's objective is to generate value through off-market/relationship-based transactions and, at the asset level, through Core+ improvements to properties and operations. The Company reports assets in excess of $1.8 billion and more than 13,200 apartment units. The Company 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 Class A assets that seek to deliver stable cash flows and potential for value creation. Bluerock has structured 1031 exchanges on $1.2 billion in total property value and over 8 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.

About Bluerock
Bluerock is a national alternative investment management firm with over $5 billion on Assets Under Management and headquartered in Manhattan with regional offices across the U.S. Bluerock principals have a collective 80+ years of investing experience, have been involved with over $10 billion in investments, and have helped launch leading private and public company platforms.

About Bluerock Capital Markets
Bluerock Capital Markets, LLC serves as the managing broker dealer for Bluerock and is a member of FINRA/SIPC. Formed in 2010, BCM distributes a broad range of institutional investment products with potential for growth, income, and tax benefits exclusively through broker dealers and investment professionals including the Total Income+ Real Estate Fund, Bluerock Residential Growth REIT, Inc., and programs issued by Bluerock Value Exchange, LLC. BCM ranked #4 for capital fundraising in 2017 among all active managing broker-dealers in the Direct Investments Industry^†.

^†Sources: The Stanger Market Pulse^TM, Blue Vault, and Mountain Dell report equity sales of public DPP, interval fund, non-listed REIT, 1031-exchange and non-listed BDC products marketed through independent broker-dealers.

The Bluerock Residential Growth REIT and Bluerock Value Exchange are offered by Bluerock Capital Markets, LLC. The 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.

Definitions
Direct Investment Industry: includes alternatives investments in public direct private placements, non-listed real estate investment trusts (REITs), non-listed business development companies (BDC)s, and closed-end interval funds.

Disclosures
Total Income+ Real Estate Fund
Investing in the 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 Total Income+ Real Estate Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained online at www.bluerockfunds.com. The 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 B Preferred Stock, a non-traded security of BRG which has not been listed on any national exchange. The risks and rewards of investing in the Series B Preferred Shares 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 B Preferred Shares.

BLU000258 / V-18-86

SOURCE Bluerock Capital Markets, LLC