UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 12, 2013
| Bluerock Residential Growth REIT, Inc. | |||||||||
| (Exact Name of Registrant as Specified in Its Charter) | |||||||||
| Maryland | 000-54946 | 26-3136483 | |||||||
| (State or other jurisdiction of incorporation or organization) |
(Commission File Number)
|
(I.R.S. Employer Identification No.) | |||||||
|
712 Fifth Avenue, 9th Floor New York, NY 10019 | |||||||||
| (Address of principal executive offices) | |||||||||
| (212) 843-1601 | |||||||||
| (Registrant’s telephone number, including area code) | |||||||||
| None | |||||||||
| (Former name or former address, if changed since last report) | |||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 1.01 | ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT |
On December 12, 2013, BR Creekside, LLC, or BR Creekside, a special-purpose entity in which Bluerock Residential Growth REIT, Inc., or the Company, holds a 24.706% indirect equity interest, entered into an Agreement of Purchase and Sale, or Purchase Agreement, with Prominent Realty Group of Georgia, Inc., or PRG, an unaffiliated third party, for the sale of its entire interest in The Reserve at Creekside Village, a 192-unit garden-style community located in Chattanooga, Tennessee, or the Creekside property. The sale price for the Creekside property is $19,600,000, subject to certain prorations and adjustments typical in a real estate transaction. At closing, BR Creekside will be required to pay down the existing mortgage indebtedness on the Creekside property in the approximate amount of $12.60 million. The expected net proceeds to the Company, after payment of closing costs and fees, are approximately $1.35 million. The closing on the sale of BR Creekside’s interest in the Creekside property is expected to occur on or before January 20, 2014, subject to a thirty-day extension option exercisable by PRG upon at least five (5) days’ advance notice to BR Creekside and payment of a $250,000 nonrefundable extension deposit. There is no assurance such sale will occur, as the sale is subject to various contingencies as set forth in the Purchase Agreement. The Purchase Agreement also provides for certain representations, warranties and covenants by BR Creekside, the breach of which could require BR Creekside to indemnify PRG, which aggregate obligation shall not exceed $150,000.
Certain statements included in this Current Report on Form 8-K are forward-looking statements within the meaning Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements above include, but are not limited to, matters identified as expectations and matters with respect to the future disposition of the property. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For more information regarding risks and uncertainties that may affect the Company’s future results, review the Company’s filings with the Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BLUEROCK RESIDENTIAL GROWTH REIT, INC. | |||
| DATE: December 18, 2013 | By: | /s/ Christopher J. Vohs | |
| Christopher J. Vohs | |||
| Chief Accounting Officer | |||