BRG Board Approves Investment in Houston's Energy Corridor

BRG Board Approves Investment in Houston's Energy Corridor

NEW YORK, May 30, 2014 (GLOBE NEWSWIRE) -- via PRWEB - Bluerock Residential
Growth REIT, Inc. (NYSE: BRG) ("BRG" or "the Company") announced today that
its Board of Directors approved an investment in a joint venture with a
nationally prominent developer of multifamily communities, to develop an
approximately 340-unit Class A rental apartment community in the thriving
Energy Corridor submarket of Houston, Texas.

BRG's underwriting projects a trended return on cost for the project of over
7.25% at stabilization, for value creation of 225 to 250 basis points versus
sales of comparable multifamily communities in the Houston, Texas area at
4.75% - 5.00%, the Company said. The investment is forecast to generate a 15%
AFFO yield during the development phase, and a 1.8x equity multiple over time.

BRG expects to invest up to $5 million of preferred equity with a 15%
annualized rate, and the right to convert into common equity upon
stabilization of the project. Affiliates of Bluerock Real Estate control 90%
of the required equity for the development, with the balance being contributed
by the developer.

"This project has been years in the making and will be well located within the
Energy Corridor submarket," said Ramin Kamfar, Chairman and CEO of BRG. "Our
development partner is a premier developer and a preferred builder in major
markets across the country, with a track record of delivering tremendous
value, both strategic and operational, to any development with which it is
associated. We are gratified to be able to partner with them and their highly
experienced development team to bring this exciting project to life."

The project will be situated in close commuting proximity to two West Houston
employment nodes: the Energy Corridor, which houses 20.3 million square feet
of office space and a reported 84,000 employees, as well as the Westchase
District, which has approximately 14.3 million square feet and 82,000
employees. Companies in the two employment centers include BP America, Citgo,
ConocoPhillips, Dow Chemical, ExxonMobil Chemical, Shell Oil Exploration and
Production, Sysco and WorleyParsons, among others.

To attract the high income demographic working in the Energy Corridor and
Westchase District, and to best leverage off its strategic location, the
venture plans to build product that is high end for the submarket, featuring
approximately 285 one bedroom units and approximately 55 two bedroom units,
averaging 814 square feet. In addition to premium finishes and appliances, the
complex will feature luxe-quality community amenities such as a resort quality
pool, state of the art fitness facility, concierge, and business center.

The terms of the agreement for the Company's preferred equity investment in
this project are still subject to final terms of negotiation, and the
investment may not be completed as the Company intends.

About Bluerock Residential Growth REIT, Inc.

Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) is a real estate
investment trust formed to acquire a diversified portfolio of
institutional-quality apartment properties in demographically attractive
growth markets throughout the United States. The Company has elected to be
taxed as a real estate investment trust (REIT) for U.S. federal income tax

About Our Development Partner

Our development partner is a premier multifamily real estate firm whose
entities develop, construct and acquire multifamily communities of the highest
standard, which has been in business for more than three decades, and has
developed more than 225,000 multifamily units in most major markets across the

Forward Looking Statements

This press release contains forward looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 and other federal
securities laws. Forward looking statements are statements that are not
historical, including statements regarding management's intentions, beliefs,
expectations, representations, plans or predictions of the future, and are
typically identified by such words as "believe," "expect," "anticipate,"
"intend," "estimate," "may," "will," "should" and "could." Because such
statements include risks, uncertainties and contingencies, actual results may
differ materially from those expressed or implied by such forward looking
statements. These forward looking statements are based upon the Company's
present expectations, but these statements are not guaranteed to occur,
including the Company's expected investment in the project, the expected
performance of the property, management's commentary regarding the property's
potential to create income and value and expectations, the attractiveness and
implied value of the property, operating performance of the property, and
outlook of the Houston, Texas market. Furthermore, the Company disclaims any
obligation to publicly update or revise any forward-looking statement to
reflect changes in underlying assumptions or factors, of new information, data
or methods, future events or other changes. Investors should not place undue
reliance upon forward looking statements. For further discussion of the
factors that could affect outcomes, please refer to the "Risk Factors" section
of the prospectus dated March 28, 2014 and filed by the Company with the
Securities and Exchange Commission ("SEC") on April 1, 2014, and other
discussions of risk factors as detailed in subsequent filings by the Company
with the SEC, including our periodic reports. We claim the safe harbor
protection for forward looking statements contained in the Private Securities
Litigation Reform Act of 1995.

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CONTACT: Bluerock Real Estate
         Joshua Hoffman
         +1 (208) 475-2380
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