BIRMINGHAM, ALA. — Atlanta-based Carter has taken control of the City Federal building, a 27-story residential building located in Birmingham and the tallest residential structure in Alabama. The firm purchased the note on the property while taking control of it from Atlanta-based Synergy through an acceptance of a deed in lieu of foreclosure.
The City Federal building was constructed in the early 1900s and added to the National Register of Historic Places in 1984. The building's namesake tenant vacated the building in 1995, and it stayed empty until Synergy launched a condominium conversion in 2005.
The company invested $20 million to create 84 luxury condominiums along with 14,842 square feet of ground-floor retail space. However, the collapse of the residential market stalled sales. Synergy tried several means to sell the remaining units including an auction and a price reduction. Currently, 28 units remain empty.
Carter plans to complete several common area improvements to enhance the project's appeal. It also will soon re-launch a sales campaign with the help of Ingram & Associates. A new pricing structure will be part of the new marketing plan. According to local reports, when the project is sold out it will have a value of more than $30 million.
“Carter is pleased to expand our investment in condo turn-around opportunities with the acquisition of the landmark City Federal Tower, said Carter Senior Vice President John Akin in a statement. “We see the continued revitalization of downtown Birmingham, from the recent opening of Railroad Park to the Pizitz redevelopment, as a significant driver of demand for downtown living.”
— Coleman Wood