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MARTIN LIPTON HERBERT M. WACHTELL THEODORE N. MIRVIS EDWARD D. HERLIHY DANIEL A. NEFF ANDREW R. BROWNSTEIN STEVEN A. ROSENBLUM JOHN F. SAVARESE SCOTT K. CHARLES JODI J. SCHWARTZ ADAM O. EMMERICH RALPH M. LEVENE RICHARD G. MASON DAVID M. SILK ROBIN PANOVKA DAVID A. KATZ ILENE KNABLE GOTTS JEFFREY M. WINTNER TREVOR S. NORWITZ BEN M. GERMANA ANDREW J. NUSSBAUM RACHELLE SILVERBERG STEVEN A. COHEN | DEBORAH L. PAUL DAVID C. KARP RICHARD K. KIM JOSHUA R. CAMMAKER MARK GORDON JEANNEMARIE O’BRIEN WAYNE M. CARLIN STEPHEN R. DiPRIMA NICHOLAS G. DEMMO IGOR KIRMAN JONATHAN M. MOSES T. EIKO STANGE WILLIAM SAVITT ERIC M. ROSOF GREGORY E. OSTLING DAVID B. ANDERS ANDREA K. WAHLQUIST ADAM J. SHAPIRO NELSON O. FITTS JOSHUA M. HOLMES DAVID E. SHAPIRO DAMIAN G. DIDDEN IAN BOCZKO | 51 WEST 52ND STREET
NEW YORK, N.Y. 10019-6150
TELEPHONE: (212) 403-1000
FACSIMILE: (212) 403-2000
| MATTHEW M. GUEST DAVID E. KAHAN DAVID K. LAM BENJAMIN M. ROTH JOSHUA A. FELTMAN ELAINE P. GOLIN EMIL A. KLEINHAUS KARESSA L. CAIN RONALD C. CHEN GORDON S. MOODIE BRADLEY R. WILSON GRAHAM W. MELI GREGORY E. PESSIN CARRIE M. REILLY MARK F. VEBLEN SARAH K. EDDY VICTOR GOLDFELD BRANDON C. PRICE KEVIN S. SCHWARTZ MICHAEL S. BENN SABASTIAN V. NILES ALISON ZIESKE PREISS TIJANA J. DVORNIC | JENNA E. LEVINE RYAN A. McLEOD ANITHA REDDY JOHN L. ROBINSON JOHN R. SOBOLEWSKI STEVEN WINTER EMILY D. JOHNSON JACOB A. KLING RAAJ S. NARAYAN VIKTOR SAPEZHNIKOV MICHAEL J. SCHOBEL ELINA TETELBAUM ERICA E. BONNETT LAUREN M. KOFKE ZACHARY S. PODOLSKY RACHEL B. REISBERG MARK A. STAGLIANO CYNTHIA FERNANDEZ LUMERMANN CHRISTINA C. MA NOAH B. YAVITZ | |
GEORGE A. KATZ (1965–1989) JAMES H. FOGELSON (1967–1991) LEONARD M. ROSEN (1965–2014)
OF COUNSEL | |||||
MICHAEL H. BYOWITZ KENNETH B. FORREST SELWYN B. GOLDBERG PETER C. HEIN JB KELLY MEYER G. KOPLOW JOSEPH D. LARSON LAWRENCE S. MAKOW DOUGLAS K. MAYER PHILIP MINDLIN DAVID S. NEILL HAROLD S. NOVIKOFF LAWRENCE B. PEDOWITZ | ERIC S. ROBINSON ERIC M. ROTH PAUL K. ROWE DAVID A. SCHWARTZ MICHAEL J. SEGAL ROSEMARY SPAZIANI ELLIOTT V. STEIN WARREN R. STERN LEO E. STRINE, JR.* PAUL VIZCARRONDO, JR. PATRICIA A. VLAHAKIS AMY R. WOLF MARC WOLINSKY | ||||
* ADMITTED IN DELAWARE
COUNSEL | |||||
DAVID M. ADLERSTEIN SUMITA AHUJA AMANDA K. ALLEXON LOUIS J. BARASH FRANCO CASTELLI ANDREW J.H. CHEUNG PAMELA EHRENKRANZ KATHRYN GETTLES-ATWA ADAM M. GOGOLAK | NANCY B. GREENBAUM MARK A. KOENIG CARMEN X.W. LU J. AUSTIN LYONS ALICIA C. McCARTHY NEIL M. SNYDER S. CHRISTOPHER SZCZERBAN JEFFREY A. WATIKER | ||||
Direct Dial: (212) 403-1005
Direct Fax: (212) 403-2005
E-Mail: VGoldfeld@wlrk.com
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May 27, 2022
Via EDGAR and Courier
Austin Wood
Pam Long
Division of Corporation Finance
Office of Real Estate & Construction
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, D.C. 20549
| Re: | Bluerock Homes Trust, Inc. |
Amendment No. 1 to Form 10-12B
Filed April 22, 2022
File No. 001-41322
Dear Mr. Wood and Ms. Long:
Further to recent discussions with the Staff of the Division of Corporation Finance, we are writing to provide supplemental information on behalf of our client, Bluerock Homes Trust, Inc. (the “Company”), regarding certain of the Relevant Properties (as defined in your comment letter dated April 8, 2022 regarding the Company’s registration statement on Form 10 (the “Registration Statement”) filed with the Securities and Exchange Commission on March 9, 2022).
ILE
As reflected in Amendment No. 1 to the Registration Statement (“Amendment No. 1”), as of December 31, 2021, the ILE portfolio had 279 units and an aggregate purchase price of $57,139,138. A majority of the properties within this portfolio were initially aggregated by the Company’s joint venture partner from unique sellers in separate acquisitions; the initial contribution of the portfolio occurred on November 19, 2021 and consisted of 238 properties with a valuation of $48.8 million. The remaining 41 properties were purchased by the joint venture from unique sellers in separate acquisitions subsequent to that date.
Set forth below is a table reflecting the number of units owned by the Company’s joint venture partner as aggregated over time prior to the initial contribution.
| Date | Number of Units Owned |
| 12/31/20 | 61 |
| 3/31/21 | 75 |
| 6/30/21 | 97 |
| 9/30/21 | 153 |
| 11/19/21 | 238 |
As of the November 19, 2021 date of contribution, only 55 of the original 238 properties had more than three months of rental history.
We believe that these additional facts further support the conclusion that Rule 3-14 financial statements are not required for the ILE portfolio. First, given that only 55 of the original 238 properties had more than three months of rental history as of the November 19, 2021 date of contribution, financial statements for the ILE portfolio prior to the contribution date would not be meaningful to investors. Second, the $48.8 million aggregate valuation of the 238 units translates to an average cost per unit in the contribution of approximately $200,000; if this average cost per unit is applied to the 55 properties, the aggregate purchase price of those properties would be approximately $11 million, far below 20% of the total assets of the Predecessor Entity as of December 31, 2020.
Texas Portfolio 183
As reflected in Amendment No. 1, as of December 31, 2021, Texas Portfolio 183 had 183 units and an aggregate purchase price of $28,290,000. The properties within this portfolio were initially aggregated by the Company’s joint venture partner from unique sellers in separate acquisitions; the contribution of the portfolio occurred on December 22, 2021 and consisted of all of the 183 properties.
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Set forth below is a table reflecting the number of units owned by the Company’s joint venture partner as aggregated over time prior to the contribution.
| Date | Number of Units Owned |
| 1/1/2021 | 20 |
| 2/1/2021 | 26 |
| 3/1/2021 | 31 |
| 4/1/2021 | 37 |
| 5/1/2021 | 44 |
| 6/1/2021 | 46 |
| 7/1/2021 | 48 |
| 8/1/2021 | 146 |
| 9/1/2021 | 183 |
| 10/1/2021 | 183 |
| 11/1/2021 | 183 |
| 12/1/2021 | 183 |
We believe that these additional facts further support the conclusion that Rule 3-14 financial statements are not required for Texas Portfolio 183. As of July 1, 2021, only 48 of the properties (i.e., approximately one quarter of the total portfolio) had been acquired by the Company’s joint venture partner. Accordingly, financial statements for Texas Portfolio 183 prior to the contribution date would not be meaningful to investors.
If you have any questions concerning the above or require any additional information in connection with the above, please do not hesitate to contact the undersigned at (212) 403-1005 or VGoldfeld@wlrk.com, or my colleague Elizabeth A. Ingriselli, at (212) 403-1130 or EAIngriselli@wlrk.com.
| Sincerely yours, | ||
| /s/ Victor Goldfeld | ||
| Victor Goldfeld | ||
| cc: | Michael Konig, Bluerock Residential Growth REIT, Inc. | |
| Jason Emala, Bluerock Asset Management, LLC | ||
| Elizabeth A. Ingriselli, Wachtell, Lipton, Rosen & Katz |
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