0000891804-11-001511.txt : 20110419 0000891804-11-001511.hdr.sgml : 20110419 20110418174207 ACCESSION NUMBER: 0000891804-11-001511 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20110418 ITEM INFORMATION: Other Events FILED AS OF DATE: 20110419 DATE AS OF CHANGE: 20110418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Bluerock Enhanced Multifamily Trust, Inc. CENTRAL INDEX KEY: 0001442626 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 000000000 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-153135 FILM NUMBER: 11766472 BUSINESS ADDRESS: STREET 1: 680 5TH AVENUE, 16TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: (212) 843-1601 MAIL ADDRESS: STREET 1: 680 5TH AVENUE, 16TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: Bluerock Enhanced Multifamily REIT, Inc. DATE OF NAME CHANGE: 20081028 FORMER COMPANY: FORMER CONFORMED NAME: Bluerock Enhanced Residential REIT, Inc. DATE OF NAME CHANGE: 20080811 8-K 1 blue51474-8k.htm BLUEROCK blue51474-8k.htm

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): April 18, 2011
 
 
 

BLUEROCK ENHANCED MULTIFAMILY TRUST, INC.
 
(Exact Name of Registrant as Specified in Its Charter)

 

 
         
Maryland
  
333-153135
  
26-3136483
 
(State or other jurisdiction of
incorporation or organization)
  
(Commission File Number)
  
IRS Employer
Identification No.

Heron Tower, 70 East 55th Street
New York, NY  10022
(Address of principal executive offices)


Registrant’s telephone number, including area code: (212) 843-1601
 
Not Applicable
(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 8.01
OTHER EVENTS

This Current Report on Form 8-K is being filed by Bluerock Enhanced Multifamily Trust, Inc. (the “Company”) to present information about the prior performance of programs sponsored by Bluerock Real Estate LLC, the Company’s sponsor.  This prior performance information is being filed on Form 8-K in order to be incorporated by reference into the Company’s Registration Statement on Form S-11 (File No. 333-153135), as amended.


 
 
 

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 ENHANCED MULTIFAMILY TRUST, INC.



DATE: April 18, 2011                                                                              /s/ R. Ramin Kamfar                                                                                                               
R. Ramin Kamfar
Chief Executive Officer and Chairman of the Board
(Principal Executive Officer)
 
 
 
 
 
 
 
PRIOR PERFORMANCE SUMMARY

As used herein, the terms "we" "our" and "us" refer to Bluerock Enhanced Multifamily Trust, Inc.
  
Prior Investment Programs

The information presented in this section represents the historical experience of real estate programs sponsored by Bluerock Real Estate, L.L.C., or Bluerock. These are all private programs as Bluerock has sponsored no public programs. Investors in this offering should not assume that they will experience returns, if any, comparable to those experienced by investors in any of Bluerock’s prior programs. Investors who purchase our shares will not acquire any ownership interest in any of the programs discussed in this section.

The Prior Performance Tables set forth information as of December 31, 2010 regarding certain of these prior programs regarding: (1) experience in raising and investing funds (Table I); (2) compensation to Bluerock or its affiliate (separate and distinct from any return on its investment) (Table II); (3) annual operating results (Table III); (4) results of completed programs (Table IV). Table V regarding results of sales or disposals of property has been omitted because no transactions of this nature have been completed during the three years ended December 31, 2010. We will furnish copies of Table VI which shows acquisitions of properties by prior funds to any prospective investor upon request and without charge.

Private Programs

As of December 31, 2010, Bluerock was the sponsor of five private programs that had closed offerings in the prior three years (see Table I). One program (Woodlands I, LLC closed prior to December 31, 2006) had been completed (see Tables III and IV).

As a percentage of acquisition and development costs, the diversification of these properties by geographic area is as follows:
 
 
State
%
 
South
48.08%
 
Midwest
11.37%
 
Northwest
17.53%
 
Northeast
23.02%
 
As a percentage of acquisition and development costs, the diversification of these properties by asset class is as follows:
 
 
Asset Class
%
 
Office
48.08%
 
Development
23.02%
 
Multifamily Residential
28.90%
 
As a percentage of acquisition and development costs, 76.98% was spent on existing or used residential and office properties, and 23.02% was spent on land acquired for development.

As of December 31, 2010, one of these programs had sold the properties it had purchased, or approximately 5.5% of all Bluerock programs closed within the prior five year period. The original purchase price of the office properties sold was approximately $14.8 million, and the aggregate sales price was approximately $19.3 million.

Bluerock directly or indirectly contributed the necessary equity to acquire the properties for these programs (ten programs in total with similar investment objectives, including the two multifamily residential properties acquired in 2008 which have not yet closed as of the date of this prospectus and the results of which are not included in the Prior Performance Tables, except for certain information contained in Table VI) and the remaining portion was typically borrowed on a non-recourse basis with the properties purchased serving as collateral for the borrowings.  Investors in these programs were not entitled to approve property acquisition sales or refinancings. The equity ultimately contributed by the incoming investors for the five programs closed within five years of December 31, 2010 typically accounted for approximately 22% to 49% of the entity’s total capital.
 
 
 
 
 

An affiliate of Bluerock serves (or, in the case of the completed programs, served) as either property manager or asset manager for each of its programs.

In addition to these programs with similar investment objectives, a notes program sponsored by Bluerock offered notes to be issued by a limited liability company affiliated with Bluerock. The issuer borrowed funds from investors, who invested in the issuer’s notes. The issuer in turn contributed the note offering proceeds to a subsidiary for investment in real estate or real estate-related debt and investments. Investors in the notes program made loans to the issuer by investing in its notes, and did not acquire equity interests therein.

As of December 31, 2010, Bluerock, through this notes program, had raised approximately $11.8 million from 179 investors. Including interest accrued through December 31, 2010, a total of approximately $10.9 million of those proceeds had been invested principally with other Bluerock affiliates.

Adverse Business Developments

Recent conditions in the general economy have adversely affected the financial and real estate markets, as well as certain of our private programs.  The BR-North Park Towers program’s property, located in Southfield, Michigan, has been under continued pressure due to the weak Michigan economy and the deterioration of the domestic automobile manufacturing industry.  In September 2009, the distributions to investors were reduced from a 6% to a 3.5% cash yield on their investment through an option, which expired December 2010, , and the property has recently become engaged in loan restructuring discussions with the first mortgage lender.  The 1355 First Avenue program, as a result of the general lack of credit in the current depressed economic environment, has been unable to secure construction financing at the originally anticipated loan-to-cost ratio in order to commence construction, necessitating additional capital raising efforts and a suspension of investor distributions in August 2009.  The Summit at Southpoint program reduced distributions in April 2009, a 7.25% to a 1% cash yield in order to rebuild reserves that were depleted to accommodate a new, large tenant in connection with a new lease with a longer than projected term.  The Valley Townhomes DST program reduced distributions from a 6.0% to a 2.0% cash yield effective July 2010, in order to build reserves due to lower than projected revenues.  The Town and Country DST program, while 100% leased, suspended distributions effective October 2010 in order to build necessary reserves for upcoming lease roll-overs and associated tenant improvement and leasing commission expenses as required by the lender.  Adverse market conditions may cause the total return to those programs to be lower than previously anticipated.

PRIOR PERFORMANCE TABLES

The following Prior Performance Tables, or Tables, provide information relating to real estate investment programs sponsored by Bluerock, or Prior Real Estate Programs, through December 31, 2010. All of the Prior Real Estate Programs presented in the Tables or otherwise discussed in the previous section entitled “Prior Performance Summary” are private programs that have no public reporting requirements. Bluerock has not previously sponsored a public program.

As of December 31, 2010, Bluerock served as sponsor of ten Prior Real Estate Programs, eight of which had been closed to outside investors as of such date and of which only one had been completed. Because the two remaining programs commenced in 2008, and have not closed nor sold any of their properties within the three most recent years, their information is not reflected in the Tables. Certain relevant information regarding these programs is presented in Table VI, which is included in Part II of our Registration Statement on Form S-11 (File No. 333-153135), as amended.  An affiliate of Bluerock serves as either property manager or asset manager for each of these programs.

In addition to these programs with similar investment objectives, a notes program sponsored by Bluerock offered notes to be issued by a limited liability company affiliated with Bluerock. The issuer borrowed funds from investors, who invested in the issuer’s notes. The issuer in turn contributed the offering proceeds to a subsidiary for investment in real estate or real estate-related debt and investments. Investors in the notes program made loans to the issuer by investing in its notes, and did not acquire equity interests therein.

As of December 31, 2010, Bluerock through this notes program had raised approximately $11.8 million from 179 investors. Including interest accrued through December 31, 2010, a total of approximately $10.9 million of those proceeds had been invested principally with other Bluerock affiliates.

Other than the notes program sponsored by Bluerock, certain of the investment objectives of the Bluerock-sponsored programs are similar to ours, including the acquisition and operation of commercial or multifamily properties; the provision of stable cash flow available for distribution to investors; preservation and protection of investor capital; and the realization of capital appreciation upon the ultimate sale or refinancing of the program properties. See “Investment Strategies, Objectives and Policies” in our Registration Statement on Form S-11 (File No. 333-153135), as amended.  Bluerock considers the investment objectives of the notes program to be different than the other Prior Real Estate Programs.  An investor in the notes program is making an investment in notes, which is a loan to the issuer, not an equity investment. The investment objective of the notes program is to provide fixed payments of interest to investors and return principal to investors, regardless of the underlying performance of the real estate assets. Because the notes program does not have similar investment objectives to Bluerock’s other Prior Real Estate Programs, the Tables do not include information on the notes program.

Our advisor is responsible for the acquisition, origination, financing, operation, maintenance and disposition of our investments. Key members of the management of Bluerock indirectly own and control our advisor and will play a significant role in the promotion of this offering and the operation of our advisor. The financial results of the Prior Real Estate Programs thus may provide some indication of our advisor’s ability to perform its obligations. However, general economic conditions affecting the real estate industry and other factors contribute significantly to financial results.


 
 
 

As an investor in our company, you will not own any interest in the Prior Real Estate Programs and should not assume that you will experience returns, if any, comparable to those experienced by investors in the Prior Real Estate Programs.

The following tables are included herein:

·  
Table I – Experience in Raising and Investing Funds;
 
·  
Table II – Compensation to Sponsor;
 
·  
Table III – Operating Results of Prior Programs;
 
·  
Table IV – Results of Completed Programs; and
 
·  
Tabe V – omitted because no sales or disposals of properties by Prior Real Estate Programs occurred in the three years ended December 31, 2010.
 
The information in these tables should be read together with the summary information under “Prior Performance Summary” in our Registration Statement on Form S-11 (File No. 333-153135), as amended.
 
 
 
 
TABLE I
(UNAUDITED)
EXPERIENCE IN RAISING AND INVESTING FUNDS
                                     
This Table I sets forth a summary of experience of  Bluerock Real Estate, L.L.C. in raising and investing funds in Prior Real Estate Programs the offerings of which have closed in the three years ended December 31, 2010.  All of the Prior Real Estate Programs presented in this Table I have similar or identical investment objectives to Bluerock Enhanced Multifamily Trust, Inc.  Information is provided with regard to the manner in which the proceeds of the offerings have been applied.  Also set forth is information pertaining to the timing and length of these offerings and the time period over which the proceeds have been invested in the properties.  All figures are as of December 31, 2010.
                                     
                                     
                                     
     
BR-North Park
    
Cummings Research Park
    
1355 First
  
Valley
     
Towers, DST
    
Portfolio I
    
Portfolio III
  
Avenue
  
Townhomes, DST
                                     
Dollar amount offered
  
 $         24,975,000
      
 $          24,209,284
      
 $         21,206,547
    
 $        31,237,500
    
 $          19,567,189
  
Dollar amount raised
  
11,432,968
45.8%
    
24,209,284
100.0%
    
21,206,547
100.0%
  
31,237,500
100.0%
  
17,909,635
91.5%
Less offering expenses:
                                  
 
Selling commissions and
                                  
 
  discounts retained by
  affiliates
  
              1,086,132
9.5%
    
               2,178,836
9.0%
    
              2,014,622
9.5%
  
             2,967,563
9.5%
  
               1,433,484
8.0%
                                     
 
Organizational expenses
  
                   91,464
0.8%
    
                  560,844
2.3%
    
                 546,635
2.6%
  
                624,750
2.0%
  
                  560,719
3.1%
Reserves
  
                           -
      
                            -
      
                           -
    
                         -
    
                           -
  
Other
  
                           -
0.0%
    
                            -
0.0%
    
                           -
0.0%
  
                         -
0.0%
  
                           -
0.0%
Amount available for
                                  
  investment
  
 $         10,255,372
89.7%
    
 $          21,469,604
88.7%
    
 $         18,645,290
87.9%
  
 $        27,645,188
88.5%
  
 $          15,915,432
88.9%
Acquisition costs:
                                  
 
Cash invested
  
8,565,186
33.9%
    
19,862,084
37.0%
    
17,016,048
32.1%
  
24,704,160
48.3%
  
14,161,820
36.4%
 
Acquisition fees
  
944,501
3.7%
    
1,433,000
2.7%
    
1,456,400
2.7%
  
1,329,471
2.6%
  
1,196,760
3.1%
 
Loan costs
  
745,685
3.0%
    
174,520
0.3%
    
172,842
0.3%
  
1,611,557
3.2%
  
556,852
1.4%
 
Mortgage financing
  
15,000,000
59.4%
    
32,250,000
60.0%
    
34,390,000
64.8%
  
23,468,330
45.9%
  
23,011,000
59.1%
Total acquisition cost
  
 $         25,255,372
100%
    
 $          53,719,604
100%
    
 $         53,035,290
100%
  
 $        51,113,518
100%
  
 $          38,926,432
100%
                                     
Percent leverage
  
59.4%
      
60.0%
      
64.8%
    
45.9%
    
59.1%
  
                                     
Date offering began
  
12/9/05
      
5/13/08
      
3/10/08
    
8/14/07
    
7/17/08
  
                                     
Length of offering (in months)
  
29
      
4.5
      
3
    
8.5
    
20.5
  
                                     
Months to invest 90% of amount
                                  
 
available for investment
                                  
 
(measured from the beginning
                                  
 
of the offering)
  
11
          (1)
    
0
      
0
    
0
    
1
  
                                     
                                     
                                     
    (1)
 Property was acquired by sponsor prior to offering date.  Sponsor has retained ownership for the portion of the offering which was not sold
  
 
    and does not intend to further syndicate this program.
                          
 
 
 
 
 
 
 
TABLE II
(UNAUDITED)
COMPENSATION TO SPONSOR
                           
This Table II sets forth the types of compensation received by Bluerock Real Estate, L.L.C., and its affiliates, including compensation paid out of offering proceeds and compensation paid in connection with ongoing operations, in connection with five programs the offerings of which have closed in the three years ended December 31, 2010  All of the Prior Real Estate Programs presented in this Table II have similar or identical investment objectives to Bluerock Enhanced Multifamily Trust, Inc.  All figures are as of December 31, 2010.
 
                         
                         
                         
         
 
              
     
BR North Park
Cummings Research Park
  1355 First  Valley  
     
Towers, DST
Portfolio I
  
Portfolio III
  
Avenue
  
Townhomes, DST
Total
Date offering commenced
12/9/2005
  
5/13/2008
  
3/10/2008
  
8/14/2007
  
7/17/2008
  
                         
Dollar amount raised
 $       11,432,968
  
 $          24,209,284
  
 $       21,206,547
  
 $       31,237,500
  
 $                         -
 $          88,086,299
                         
Amount paid to sponsor from proceeds
                  
 
of offering:
                    
 
Underwriting fees
 $                        -
  
 $                        -
  
 $                      -
  
 $                      -
  
 $                         -
 $                        -
 
Acquisition fees
    
                           -
  
                         -
          
 
- 
real estate commissions
                           -
  
                           -
  
                         -
  
                           -
  
                              -
                             -
 
- 
advisory fees
               309,600
  
               1,433,000
  
            1,456,400
  
            1,329,471
  
               1,196,760
               5,725,231
 
- 
Reimbursed offering expenses
                 91,464
  
                  560,844
  
               546,635
  
               624,750
  
                  560,719
               2,384,412
 
Other
                           -
  
                           -
  
                 35,000
  
                           -
  
                              -
                    35,000
Total amount paid to sponsor
 $            401,064
  
 $            1,993,844
  
 $         2,038,035
  
 $         1,954,221
  
 $            1,757,479
 $            8,144,643
                         
Dollar amount of cash generated
                    
 
from operations before deducting
                  
 
payments to sponsor
 $         1,746,722
  
 $            7,438,577
  
 $         7,316,915
  
 $         4,292,302
    $            2,115,145
 $          22,909,661
                         
Amount paid to sponsor from operations:
                  
 
Property management fees
                         -
  
                547,375
  
               613,618
  
                         -
  
                            -
               1,160,993
 
Partnership management fees
                         -
  
                           -
  
                         -
  
                         -
  
                            -
                             -
 
Construction management fees
                         -
  
                 54,090
  
                 53,548
  
            1,200,000
  
                            -
               1,307,638
 
Reimbursements
                         -
  
                           -
      
                         -
  
                            -
                             -
 
Leasing commissions
                         -
  
                           -
  
                         -
  
                         -
  
                            -
                             -
 
Other
                         -
  
                           -
  
                         -
  
                         -
  
                            -
                             -
                         
Dollar amount of property sales and
                    
 
refinancing before deducting
                    
 
payments to sponsor:
                    
 
- 
cash
                         -
  
                           -
  
                         -
  
                         -
  
                            -
                             -
 
- 
notes
                         -
  
                           -
  
                         -
  
                         -
  
                            -
                             -
                         
Amount paid to sponsor from property sales
                  
 
and refinancing:
                    
 
Real estate commissions
                         -
  
                           -
  
                         -
  
                         -
  
                            -
                             -
 
Incentive fees
                         -
  
                           -
  
                         -
  
                         -
  
                            -
                             -
 
Other
                         -
  
                           -
  
                         -
  
                         -
  
                            -
                             -
 
 
 
 
 
 
 
 
TABLE III
(UNAUDITED)
ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS
         
This Table III sets forth the annual operating results of Prior Real Estate Programs sponsored by Bluerock Real Estate, L.L.C. and its affiliates that have closed offerings during the five years ended December 31, 2010. All of the Prior Real Estate Programs presented in this Table III have similar or identical investment objectives to Bluerock Enhanced Multifamily Trust, Inc. All figures are for the period commencing January 1 of the year acquired, except as otherwise noted.
         
Woodlands I, L.L.C. (sponsor by Bluerock Real Estate, L.L.C.)
        
         
     
 2006 (1)
  
Gross revenue
   $
998,884
  
Gain on sale of properties
    
         2,829,029
  
Interest income
    
              27,167
  
         
Less:
        
  Operating expenses
    
            313,445
  
  Interest expense
    
            306,455
  
  Property and asset management fees
    
                      -
  
  General and administrative
    
              91,785
  
  Commissions
    
                      -
  
  Depreciation and amortization
    
            472,430
  
Net income - GAAP basis
   $
2,670,965
  
         
Taxable income
        
  - from operations
   $
(158,064)
  
  - from gain on sale
    
         2,829,029
  
         
Cash generated from operations
    
           (119,504)
  
Cash generated from sales
    
         5,214,685
  
Cash generated from financing/refinancing
    
                      -
  
Total cash generated from operations, sales
    
                      -
  
  and refinancing
    
         5,095,181
  
         
Less: Cash distributed to investors
        
  - from operating cash flow
    
              60,483
  
  - from sales and refinancing
    
         5,214,685
  
  - from other
    
                      -
  
         
Cash generated (deficiency) after cash distributions
    
            640,554
  
         
Special items (not including sales and refinancing)
        
  Improvements to building
    
                      -
  
  Other
    
                      -
  
         
Cash generated (deficiency) after cash distributions
        
  and special items
   $
640,554
  
         
Tax and Distribution Data Per $1,000 Invested
        
Federal income tax results:
        
Ordinary income (loss)
        
 - from operations
   $
(31)
  
 - from recapture
    
                        -
  
         
Capital gain (loss)
   $
131
  
         
Cash distribution to investors
        
  Source (on GAAP basis)
        
  - from investment income
    
224
  
  - from return of capital
    
1,000
  
Total distributions on GAAP basis
   $
1,224
  
         
  Source (on cash basis)
        
  - from operations
   $
14
  
  - from refinancing
    
                        -
  
  - from other
    
                        -
  
  - from sales
    
                1,210
  
Total distributions on cash basis
   $
1,224
  
         
Amount (in percentage terms) remaining invested
        
  in program properties at the end of last year
        
  reported in table
    
0%
  
(1) The property owned by Woodland I, LLC was purchased on April 14, 2003 and sold on May 15, 2006.
 
 
 
 
 
 
 
BR North Park Towers, DST (Sponsored by Bluerock Real Estate, L.L.C.)
                          
                               
   
2006
    
2007
    
2008
    
2009
    
2010
  
Gross revenue
   $ 867,355     $ 2,165,177     $ 2,145,856     $ 2,099,164     $ 2,409,865  
Interest income
     -       -       -       -       -  
                                         
Less:
                                        
  Operating expenses
     -       -       -       -       -  
  Interest expense
     334,676       806,665       817,705       838,047       891,853  
  Property and asset management fees
     -       -       -       -       -  
  General and administrative
     32,044       116,998       120,162       118,150       607,654  
  Commissions
     -       -       -       -       -  
  Depreciation and amortization
     512,927       1,259,215       1,286,330       1,295,774       1,349,138  
Net income - GAAP basis
   $ (11,972 )   $ (17,701 )   $ (78,340 )   $ (152,807 )   $ (438,780 )
                                         
Taxable income
                                        
  - from operations
   $ (11,972 )   $ (17,701 )   $ (78,340 )   $ (152,807 )   $ (438,780 )
  - from gain on sale
     -       -       -       -       -  
                                         
Cash generated from operations
     193,293       838,586       247,915       415,545       302,906  
Cash generated from sales
     -       -       -       -       -  
Cash generated from financing/refinancing
     -       -       -       -       -  
Total cash generated from operations, sales
     -       -       -       -       -  
  and refinancing
     193,293       838,586       247,915       415,545       302,906  
                                         
Less: Cash distributed to investors
                                        
  - from operating cash flow
     88,823       -       215,589       415,545       104,274  
  - from sales and refinancing
     -       -       -       -       -  
  - from other
     -       -       -       191,054       -  
                                         
Cash generated (deficiency) after cash distributions
     104,470       838,586       32,326       (191,054 )     198,632  
                                         
Special items (not including sales and refinancing)
                                        
  Improvements to building
     72,080       219,681       205,489       445,544       238,500  
  Other
     34,837       34,224       65,660       25,231       35,158  
                                         
Cash generated (deficiency) after cash distributions
                                        
  and special items
   $ (2,446 )   $ 584,681     $ (238,822 )   $ (661,829 )   $ (75,026 )
                                         
Tax and Distribution Data Per $1,000 Invested
                                        
Federal income tax results:
                                        
Ordinary income (loss)
                                        
 - from operations
   $ (1 )   $ (2 )   $ (7 )   $ (13 )   $ (38 )
 - from recapture
     -       -       -       -       -  
                                         
Capital gain (loss)
   $ -     $ -     $ -     $ -     $ -  
                                         
Cash distribution to investors
                                        
  Source (on GAAP basis)
                                        
  - from investment income
   $ 8     $ -     $ 19     $ 36     $ 9  
  - from return of capital
     -       -       -       -       -  
Total distributions on GAAP basis
   $ 8     $ -     $ 19     $ 36     $ 9  
                                         
  Source (on cash basis)
                                        
  - from operations
   $ 8     $ -     $ 19     $ 36     $ 9  
  - from refinancing
     -       -       -       -       -  
  - from other
     -       -       -       -       -  
  - from sales
     -       -       -       -       -  
Total distributions on cash basis
   $ 8     $ -     $ 19     $ 36     $ 9  
                                         
Amount (in percentage terms) remaining invested
                                        
  in program properties at the end of last year
                                        
  reported in table
     100 %     100 %     100 %     100 %     100 %
 
 
 
 
 
 
 
Summit at Southpoint (sponsored by Bluerock Real Estate, L.L.C.)
                        
   
2007
    
2008
    
2009
    
2010
  
Gross revenue
   $ 4,594,040     $ 4,844,940     $ 4,543,029     $ 4,855,748  
Interest income
     63,770       19,749       7,855       5,117  
                                 
Less:
                                
  Operating expenses
     1,893,957       1,876,996       1,817,877       1,652,949  
  Interest expense
     1,620,832       1,356,549       1,352,842       1,352,842  
  Property and asset management fees
     181,349       355,891       227,596       253,871  
  General and administrative
     82,099       112,526       49,678       86,382  
  Commissions
     -       -       -       -  
  Depreciation and amortization
     587,252       614,799       696,371       785,649  
Net Income - GAAP basis
   $ 292,320     $ 547,928     $ 406,520     $ 729,172  
                                 
Taxable income
                                
  - from operations
   $ 292,320     $ 547,928     $ 406,520     $ 729,172  
  - from gain on sale
     -       -       -       -  
                                 
Cash generated from operations
     1,151,744       1,188,747       (596,287 )     1,386,285  
Cash generated from sales
     -       -       -       -  
Cash generated from financing/refinancing
     -       -       -       -  
Total cash generated from operations, sales
     -       -       -       -  
  and refinancing
     1,151,744       1,188,747       (596,287 )     1,386,285  
                                 
Less: Cash distributed to investors
                                
  - from operating cash flow
     537,825       1,114,975       357,558       135,450  
  - from sales and refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
                                 
Cash generated (deficiency) after cash distributions
     613,919       73,772       (953,845 )     1,250,835  
                                 
Special items (not including sales and refinancing)
                                
  Improvements to building
     336,367       147,866       207,036       245,457  
  Other
     21,020       -       -       -  
                                 
Cash generated (deficiency) after cash distributions
                                
  and special items
   $ 256,532     $ (74,094 )   $ (1,160,881 )   $ 1,005,378  
                                 
Tax and Distribution Data Per $1,000 Invested
                                
Federal income tax results:
                                
Ordinary income (loss)
                                
 - from operations
   $ 22     $ 41     $ 30     $ 54  
 - from recapture
     -       -       -       -  
                                 
Capital gain (loss)
   $ -     $ -     $ -     $ -  
                                 
Cash distribution to investors
                                
  Source (on GAAP basis)
                                
  - from investment income
   $ 40     $ 83     $ 27     $ 10  
  - from return of capital
     -       -       -       -  
Total distributions on GAAP basis
   $ 40     $ 83     $ 27     $ 10  
                                 
  Source (on cash basis)
                                
  - from operations
   $ 40     $ 83     $ 27     $ 10  
  - from refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
  - from sales
     -       -       -       -  
Total distributions on cash basis
   $ 40     $ 83     $ 27     $ 10  
                                 
Amount (in percentage terms) remaining invested
                                
  in program properties at the end of last year
                                
  reported in table
     100 %     100 %     100 %     100 %
                                 
(1) The property owned by Summit at Southpoint was purchased on February 22, 2006.
                          
 
 
 
 
 
 
 
Landmark/Laumeier Office Portfolio (sponsored by Bluerock Real Estate, L.L.C.)
                    
                         
   
2007 (1)
    
2008
    
2009
    
2010
  
Gross revenue
   $ 3,202,979     $ 3,608,620     $ 3,784,480     $ 3,462,669  
Interest income
     2,978       24,729       16,688       6,237  
                                 
Less:
                                
  Operating expenses
     998,593       1,491,113       1,319,332       1,209,159  
  Interest expense
     880,119       1,049,505       1,046,637       1,046,637  
  Property and asset management fees
     142,422       217,125       228,895       218,323  
  General and administrative
     19,136       55,346       108,149       144,903  
  Depreciation and amortization
     479,502       578,004       596,984       619,872  
Net Income - GAAP basis
   $ 686,185     $ 242,257     $ 501,171     $ 230,012  
                                 
Taxable income
                                
  - from operations
   $ 686,185     $ 242,257     $ 501,171     $ 230,012  
  - from gain on sale
     -       -       -       -  
                                 
Cash generated from operations
     306,846       1,683,131       810,365       854,816  
Cash generated from sales
     -       -       -       -  
Cash generated from financing/refinancing
     -       -       -       -  
Total cash generated from operations, sales
     -       -       -       -  
  and refinancing
     306,846       1,683,131       810,365       854,816  
                                 
Less: Cash distributed to investors
                                
  - from operating cash flow
     197,822       530,401       557,726       564,375  
  - from sales and refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
                                 
Cash generated (deficiency) after cash distributions
     109,024       1,152,730       252,639       290,441  
                                 
Special items (not including sales and refinancing)
                                
  Improvements to building
     87,649       66,696       142,668       153,992  
  Other
     -       147,937       63,880       33,717  
                                 
Cash generated (deficiency) after cash distributions
                                
  and special items
   $ 21,375     $ 938,097     $ 46,091     $ 102,732  
                                 
Tax and Distribution Data Per $1,000 Invested
                                
Federal income tax results:
                                
Ordinary income (loss)
                                
 - from operations
   $ 92     $ 33     $ 67     $ 31  
 - from recapture
     -       -       -       -  
                                 
Capital gain (loss)
   $ -     $ -     $ -     $ -  
                                 
Cash distribution to investors
                                
  Source (on GAAP basis)
                                
  - from investment income
   $ 27     $ 71     $ 75     $ 76  
  - from return of capital
     -       -       -       -  
Total distributions on GAAP basis
   $ 27     $ 71     $ 75     $ 76  
                                 
  Source (on cash basis)
                                
  - from operations
   $ 27     $ 71     $ 75     $ 76  
  - from refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
  - from sales
     -       -       -       -  
Total distributions on cash basis
   $ 27     $ 71     $ 75     $ 76  
                                 
Amount (in percentage terms) remaining invested
                                
  in program properties at the end of last year
                                
  reported in table
     100 %     100 %     100 %     100 %
                                 
                                 
(1) The property owned by Landmark/Laumeier Porfolio was purchased on May 14, 2007.
                          
 
 
 
 
 
 
1355 First Avenue (sponsored by Bluerock Real Estate, L.L.C.)
                        
                         
   
2007 (1)
    
2008
    
2009
    
2010
  
Gross revenue
   $ -     $ 2,787,649.67     $ 2,500,000.00     $ 1,249,500.00  
Interest income
     59,607       96,724       36,916       2  
                                 
Less:
                                
  Operating expenses
     60,000       -       -       -  
  Interest expense
     1,020,964       -       -       -  
  Property and asset management fees
     -       -       -       -  
  General and administrative
     95,225       19,609       929,600       1,281,830  
  Commissions
     -       -       -       -  
  Depreciation and amortization
     -       -       -       -  
Net Income - GAAP basis
   $ (1,116,582 )   $ 2,864,765     $ 1,607,316     $ (32,328 )
                                 
Taxable income
                                
  - from operations
   $ -     $ 2,864,765     $ 1,607,316     $ (32,328 )
  - from gain on sale
     -       -       -       -  
                                 
Cash generated from operations
     (1,347,451 )     2,864,765       1,607,316       (32,328 )
Cash generated from sales
     -       -       -       -  
Cash generated from financing/refinancing
     -       -       -       -  
Total cash generated from operations, sales
     -       -       -       -  
  and refinancing
     (1,347,451 )     2,864,765       1,607,316       (32,328 )
                                 
Less: Cash distributed to investors
                                
  - from operating cash flow
     -       1,641,714       1,641,714       -  
  - from sales and refinancing
     101,719       -       -       -  
  - from other
     -       -       -       -  
                                 
Cash generated (deficiency) after cash distributions
     (1,449,170 )     1,223,051       (34,398 )     (32,328 )
                                 
Special items (not including sales and refinancing)
                                
  Improvements to building
     1,348,767       13,254,395       -       -  
  Other
     -       -       -       -  
                                 
Cash generated (deficiency) after cash distributions
                                
  and special items
   $ (2,797,937 )   $ (12,031,344 )   $ (34,398 )   $ (32,328 )
                                 
Tax and Distribution Data Per $1,000 Invested
                                
Federal income tax results:
                                
Ordinary income (loss)
                                
 - from operations
   $ (55 )   $ 92     $ 51     $ (1 )
 - from recapture
     -       -       -       -  
                                 
Capital gain (loss)
   $ -     $ -     $ -     $ -  
                                 
Cash distribution to investors
                                
  Source (on GAAP basis)
                                
  - from investment income
   $ -     $ 53     $ 53     $ -  
  - from return of capital
     -       -       -       -  
Total distributions on GAAP basis
   $ -     $ -     $ -     $ -  
                                 
  Source (on cash basis)
                                
  - from operations
   $ -     $ 53     $ 53     $ -  
  - from refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
  - from sales
     -       -       -       -  
Total distributions on cash basis
   $ -     $ -     $ -     $ -  
                                 
Amount (in percentage terms) remaining invested
                                
  in program properties at the end of last year
                                
  reported in table
     100 %     100 %     100 %     100 %
                                 
                                 
(1) The property owned by 1355 First Avenue was purchased on June 29, 2007.
                          
 
 
 
 
 
 
 
Huntsville - Cummings Research Park - Portfolio I -
                        
                         
   
2007
    
2008
    
2009
    
2010
  
Gross revenue
   $ 1,487,708     $ 7,289,265     $ 7,352,316     $ 8,414,035  
Interest income
     31,243       26,097       12,190       3,928  
      -       -       -       -  
Less:
     -       -       -       -  
  Operating expenses
     268,377       3,544,865       3,054,756       3,254,161  
  Interest expense
     -       2,121,351       2,137,262       2,115,555  
  Property and asset management fees
     33,867       367,068       539,099       511,091  
  General and administrative
     4,949       106,368       83,840       171,097  
  Commissions
     -       -       -       -  
  Depreciation and amortization
     517,388       3,120,810       3,160,544       3,212,140  
Net Income - GAAP basis
   $ 694,370     $ (1,945,100 )   $ (1,610,995 )   $ (846,081 )
                                 
Taxable income
                                
  - from operations
   $ 694,370     $ (1,945,100 )   $ (1,610,995 )   $ (846,081 )
  - from gain on sale
     -       -       -       -  
      -       -       -       -  
Cash generated from operations
     11,107,095       1,185,345       2,913,660       2,104,243  
Cash generated from sales
     -       -       -       -  
Cash generated from financing/refinancing
     -       -       -       -  
Total cash generated from operations, sales
     -       -       -       -  
  and refinancing
     11,107,095       1,185,345       2,913,660       2,104,243  
                                 
Less: Cash distributed to investors
                                
  - from operating cash flow
     -       1,350,057       1,561,452       877,587  
  - from sales and refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
                                 
Cash generated (deficiency) after cash distributions
     11,107,095       (164,712 )     1,352,208       1,226,656  
                                 
Special items (not including sales and refinancing)
                                
  Improvements to building
     -       2,388,717       146,824       324,236  
  Other
     -       96,876       351,925       114,385  
                                 
Cash generated (deficiency) after cash distributions
                                
  and special items
   $ 11,107,095     $ (2,650,305 )   $ 853,459     $ 788,035  
                                 
Tax and Distribution Data Per $1,000 Invested
                                
Federal income tax results:
                                
Ordinary income (loss)
                                
 - from operations
   $ -     $ (80 )   $ (67 )   $ (35 )
 - from recapture
     -       -       -       -  
      -       -       -       -  
Capital gain (loss)
   $ -     $ -     $ -     $ -  
      -       -       -       -  
Cash distribution to investors
     -       -       -       -  
  Source (on GAAP basis)
     -       -       -       -  
  - from investment income
   $ -     $ 56     $ 64     $ 36  
  - from return of capital
   $ -     $ -     $ -     $ -  
Total distributions on GAAP basis
   $ -     $ 56     $ 64     $ 36  
                                 
  Source (on cash basis)
                                
  - from operations
   $ -     $ 56     $ 64     $ 36  
  - from refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
  - from sales
     -       -       -       -  
Total distributions on cash basis
   $ -     $ 56     $ 64     $ 36  
                                 
Amount (in percentage terms) remaining invested
                                
  in program properties at the end of last year
                                
  reported in table
     100 %     100 %     100 %     100 %
 
 
 
 
 
 
Huntsville - Cummings Research Park - Portfolio II-
                        
                         
   
2007
    
2008
    
2009
    
2010
  
Gross revenue
   $ 1,314,505     $ 8,511,115     $ 9,213,136     $ 9,287,664  
Interest income
     136,487       29,370       9,768       2,716  
      -       -       -       -  
Less:
     -       -       -       -  
  Operating expenses
     260,708       3,466,514       3,632,458       3,606,173  
  Interest expense
     -       2,690,334       2,702,035       2,682,983  
  Property and asset management fees
     41,392       534,851       602,508       545,046  
  General and administrative
     9,020       136,070       97,671       221,110  
  Commissions
     -       -       -       -  
  Depreciation and amortization
     359,308       2,174,579       2,247,563       2,404,671  
Net Income - GAAP basis
   $ 780,564     $ (461,863 )   $ (59,331 )   $ (169,603 )
      -       -       -       -  
Taxable income
     -       -       -       -  
  - from operations
   $ 780,564     $ (461,863 )   $ (59,331 )   $ (169,603 )
  - from gain on sale
     -       -       -       -  
      -       -       -       -  
Cash generated from operations
     11,020,459       2,945,123       3,105,688       2,756,518  
Cash generated from sales
     -       -       -       -  
Cash generated from financing/refinancing
     -       -       -       -  
Total cash generated from operations, sales
     -       -       -       -  
  and refinancing
     11,020,459       2,945,123       3,105,688       2,756,518  
      -       -       -       -  
Less: Cash distributed to investors
     -       -       -       -  
  - from operating cash flow
     -       1,227,028       1,500,710       1,303,198  
  - from sales and refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
      -       -       -       -  
Cash generated (deficiency) after cash distributions
     11,020,459       1,718,095       1,604,978       1,453,320  
      -       -       -       -  
Special items (not including sales and refinancing)
     -       -       -       -  
  Improvements to building
     -       1,461,149       1,366,653       69,728  
  Other
     -       -       -       1,524,497  
      -       -       -       -  
Cash generated (deficiency) after cash distributions
     -       -       -       -  
  and special items
   $ 11,020,459     $ 256,946     $ 238,325     $ (140,905 )
                                 
Tax and Distribution Data Per $1,000 Invested
                                
Federal income tax results:
                                
Ordinary income (loss)
                                
 - from operations
   $ -     $ (22 )   $ (3 )   $ (8 )
 - from recapture
     -       -       -       -  
                                 
Capital gain (loss)
   $ -     $ -     $ -     $ -  
                                 
Cash distribution to investors
     -       -       -       -  
  Source (on GAAP basis)
     -       -       -       -  
  - from investment income
   $ -     $ 58     $ 71     $ 61  
  - from return of capital
     -       -       -       -  
Total distributions on GAAP basis
   $ -     $ 58     $ 71     $ 61  
                                 
  Source (on cash basis)
                                
  - from operations
   $ -     $ 58     $ 71     $ 61  
  - from refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
  - from sales
     -       -       -       -  
Total distributions on cash basis
   $ -     $ 58     $ 71     $ 61  
                                 
Amount (in percentage terms) remaining invested
                                
  in program properties at the end of last year
                                
  reported in table
     100 %     100 %     100 %     100 %
 
 
 
 
 
 
 
Huntsville - Cummings Research Park - Portfolio III -
                        
                         
   
2007
    
2008
    
2009
    
2010
  
Gross revenue
   $ 1,218,835     $ 8,164,819     $ 8,691,299     $ 8,852,890  
Interest income
     31,534       19,721       10,224       4,973  
      -       -       -       -  
Less:
     -       -       -       -  
  Operating expenses
     305,746       3,631,519       3,651,460       3,618,446  
  Interest expense
     -       2,262,117       2,250,949       2,255,936  
  Property and asset management fees
     33,426       324,969       561,211       503,519  
  General and administrative
     9,952       327,175       144,304       242,521  
  Commissions
     -       -       -       -  
  Depreciation and amortization
     319,636       2,205,383       2,262,351       2,340,006  
Net Income - GAAP basis
   $ 581,609     $ (566,623 )   $ (168,752 )   $ (102,565 )
      -       -       -       -  
Taxable income
     -       -       -       -  
  - from operations
   $ 581,609     $ (566,623 )   $ (168,752 )   $ (102,565 )
  - from gain on sale
     -       -       -       -  
      -       -       -       -  
Cash generated from operations
     8,981,298       2,661,423       2,155,584       1,984,281  
Cash generated from sales
     -       -       -       -  
Cash generated from financing/refinancing
     -       -       -       -  
Total cash generated from operations, sales
     -       -       -       -  
  and refinancing
     8,981,298       2,661,423       2,155,584       1,984,281  
      -       -       -       -  
Less: Cash distributed to investors
     -       -       -       -  
  - from operating cash flow
     -       1,244,261       1,483,267       1,290,065  
  - from sales and refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
      -       -       -       -  
Cash generated (deficiency) after cash distributions
     8,981,298       1,417,162       672,317       694,216  
      -       -       -       -  
Special items (not including sales and refinancing)
     -       -       -       -  
  Improvements to building
     -       941,557       403,095       16,448  
  Other
     4,508,843       -       -       208,665  
      -       -       -       -  
Cash generated (deficiency) after cash distributions
     -       -       -       -  
  and special items
   $ 4,472,455     $ 475,605     $ 269,222     $ 469,103  
                                 
Tax and Distribution Data Per $1,000 Invested
                                
Federal income tax results:
                                
Ordinary income (loss)
                                
 - from operations
   $ -     $ (27 )   $ (8 )   $ (5 )
 - from recapture
                                
      -       -       -       -  
Capital gain (loss)
   $ -     $ -     $ -     $ -  
                                 
Cash distribution to investors
     -       -       -       -  
  Source (on GAAP basis)
     -       -       -       -  
  - from investment income
   $ -       59       70       61  
  - from return of capital
     -       -       -       -  
Total distributions on GAAP basis
   $ -       59       70       61  
                                 
  Source (on cash basis)
                                
  - from operations
   $ -       59       70       61  
  - from refinancing
     -       -       -       -  
  - from other
     -       -       -       -  
  - from sales
     -       -       -       -  
Total distributions on cash basis
   $ -       59       70       61  
                                 
Amount (in percentage terms) remaining invested
                                
  in program properties at the end of last year
                                
  reported in table
     100 %     100 %     100 %     100 %
 
 
 
 
 
 
 
Valley Townhomes, DST
                  
                   
   
2008
    
2009
    
2010
  
Gross revenue
   $ 1,414,438     $ 3,205,082     $ 3,340,515  
Interest income
     3,847       -       -  
                         
Less:
                        
  Operating expenses
     280,482       941,867       998,446  
  Interest expense
     1,076,864       2,615,301       2,631,181  
  Property and asset management fees
     40,380       96,148       99,930  
  General and administrative
     91,704       33,676       75,400  
  Commissions
     -       -       -  
  Depreciation and amortization
     16,042       1,750,616       -  
Net Income - GAAP basis
   $ (87,187 )   $ (2,232,526 )   $ (464,442 )
                         
Taxable income
                        
  - from operations
   $ (87,187 )   $ (2,232,526 )   $ (464,442 )
  - from gain on sale
     -       -       -  
                         
Cash generated from operations
     734,909       849,492       530,744  
Cash generated from sales
     -       -       -  
Cash generated from financing/refinancing
     -       -       -  
Total cash generated from operations, sales
                        
  and refinancing
     734,909       849,492       530,744  
                         
Less: Cash distributed to investors
                        
  - from operating cash flow
     141,508       909,072       769,796  
  - from sales and refinancing
     -       -       -  
  - from other
     -       -       -  
                         
Cash generated (deficiency) after cash distributions
     593,401       (59,580 )     (239,052 )
                         
Special items (not including sales and refinancing)
                        
  Improvements to building
     -       723,407       -  
  Other
     -       548,420       33,706  
                         
Cash generated (deficiency) after cash distributions
                        
  and special items
   $ 593,401     $ (1,331,407 )   $ (272,758 )
                         
Tax and Distribution Data Per $1,000 Invested
                        
Federal income tax results:
                        
Ordinary income (loss)
                        
 - from operations
   $ (5 )   $ (125 )   $ (26 )
 - from recapture
     -       -       -  
                         
Capital gain (loss)
   $ -     $ -     $ -  
                         
Cash distribution to investors
                        
  Source (on GAAP basis)
                        
  - from investment income
     8       51       43  
  - from return of capital
     -       -       -  
Total distributions on GAAP basis
     8       51       43  
                         
  Source (on cash basis)
                        
  - from operations
     8       51       43  
  - from refinancing
     -       -       -  
  - from other
     -       -       -  
  - from sales
     -       -       -  
Total distributions on cash basis
     8       51       43  
                         
Amount (in percentage terms) remaining invested
                        
  in program properties at the end of last year
                        
  reported in table
     100 %     100 %     100 %
                         
                         
(1) The property owned by Valley Townshomes, DST was purchased on July 31, 2008
                        
 
 
 
 
 
TABLE IV
  
(UNAUDITED)
  
RESULTS OF COMPLETED PROGRAMS
  
               
This Table IV sets forth the results of completed  Prior Real Estate Programs sponsored by Bluerock Real Estate, L.L.C.  that have sold properties and  completed operations during the five years ended December 31, 2010.  All of the Prior Real Estate Programs presented in this Table IV have similar or identical investment objectives to  Bluerock Enhanced Multifamily Trust, Inc.
 
             
             
         
 Bluerock Real
  
         
 Estate, LLC
  
         
 sponsored
  
         
 program
  
         
 Woodlands I
  
         
 LLC
  
             
Dollar amount raised
    
 $                     4,311,100
  
             
Number of properties purchased
  
                                      3
  
             
Date of closing of offering
    
3/9/2005
  
             
Date of first sale of property
    
5/15/2006
  
             
Date of final sale of property
    
5/15/2006
  
             
Tax and Distribution Data Per $1,000 Investment
    
Federal Income Tax Results:
        
 
Ordinary income (loss)
        
 
- 
from operations
    
 $                               (95)
  
 
- 
from recapture
    
                                     -
  
             
 
Capital Gain (loss)
    
                                  656
  
             
 
Deferred Gain
        
 
- 
Capital
    
                                     -
  
 
- 
Ordinary
    
                                     -
  
             
Cash Distributions to Investors
      
 
Source (on GAAP basis)
        
 
- 
Investment income
    
                                  480
  
 
- 
Return of capital
    
                               1,000
  
             
 
Source (on cash basis)
        
 
- 
Sales
    
                               1,210
  
 
- 
Refinancing
    
                                     -
  
 
- 
Operations
    
                                  270
  
 
- 
Other
    
                                     -
  
             
Receivable on Net Purchase Money Financing
                                     -