The real estate market in downtown Birmingham has followed the “chicken and egg” trend. Over the last few years, over a dozen multifamily projects have been announced, but the major hurdle is proving the demand as people moving downtown have wanted a downtown grocer. While some multifamily developers decided to proceed with construction, others waited on the sidelines hoping a grocer would announce a new downtown location. On the other hand, major grocers put off locating in downtown Birmingham due to the lack of people living in the general area. Problem solved when construction started last year on a new 30,000-square-foot Publix with a full-service pharmacy in downtown Birmingham. Developers Scott Bryant and Dick Schmalz announced that the Publix will anchor a new multi-story, mixed-used development. Publix considered a store in downtown Birmingham in 2007 and again in 2009 before finally deciding to bring a store downtown now. The development of the Parkside District with Railroad Park and Regions Field, along with existing and planned apartment projects in the area, contributed to the timing. With the addition of Publix, several other multifamily projects are well underway or completed, such as the 228-unit LIV Parkside, 332 total units next to Regions …
TALLADEGA, ALA. — The Cooper Commercial Investment Group has brokered the $2.1 million sale of Talladega Plaza, a 37,981-square-foot retail center located in Talladega. The center is shadow-anchored by a Walmart Supercenter. Dan Cooper of Cooper Commercial’s Cleveland office represented the seller, a private investor based in Alabama. The buyer is a private investor based in Kansas.
Pick up any Birmingham newspaper and the headlines will likely reveal plans for a historic building renovation, a new mixed-use development or a prominent Birmingham company expanding into the Central Business District (CBD). Birmingham has enjoyed a surge of development over the last few years, with nationally recognized projects such as Railroad Park and Regions Field, the renovations of prominent downtown buildings and the emergence of new districts throughout the city. With all the development going on, it’s no wonder that the Birmingham office market is thriving with investors taking an interest in many of the city’s best Class A properties. The years 2014 and 2015 marked a record number of Class A properties trading to prominent national investors, and the trend seems to be continuing into 2016. Over the past year, Hertz Investment Group expanded its Birmingham footprint to include Inverness Center (four buildings), the Wells Fargo Tower and the BB&T Bank Building, a total of more than 1 million square feet. The Matrix Group purchased the four-building portfolio Meadow Brook North, totaling more than 500,000 square feet. 2016 is off to a promising start with the sale of one of the Southern submarket’s most prominent buildings, the 211,335-square-foot …
TUSCALOOSA, ALA. — The Memphis office of Financial Federal Bank has secured the $20 million refinancing of a 154-room Embassy Suites hotel in Tuscaloosa. Financial Federal Bank arranged the loan through an unnamed life insurance company on behalf of the borrower.
MOBILE, ALA. — Moran & Co. Southeast has brokered the $12.8 million sale of Cimarron Ridge, a 248-unit apartment community located at 6427 Grelot Road in Mobile. The property’s average unit size is 695 square feet and residences feature white appliances, vaulted ceilings, walk-in closets, patios and balconies, wood cabinets and fireplaces in select units. Community amenities include two swimming pools, a gazebo with a picnic area, children’s play area, clubhouse with a fitness center and in-building laundry facilities. Atlanta-based Alexander Property Group purchased the asset from Atlanta-based Kaufman Realty Group. Sean Henry, Joel Sasser and John Huckaby of Moran & Co. Southeast brokered the transaction.
BIRMINGHAM, ALA. — CBRE has arranged the $8.4 million sale of The Shops on Montevallo, a 64,851-square-foot shopping center located near I-20 in Birmingham. Built in 1985 and renovated in 2012, the retail center was 97 percent leased at the time of sale to tenants including anchor Planet Fitness. Baltimore-based Continental Realty Corp. purchased the property from local developer Merchants Retail Partners. Craig Taylor of CBRE’s Atlanta office and Cliff Taylor of the firm’s Jacksonville office represented the seller in the transaction.
Birmingham’s renaissance has been underway for several years now, but it has taken some time for the rest of the world to find out. This year they started paying attention. The opening of Railroad Park, Regions Field, the Iron City event venue and now the recently restored Lyric Theatre have made it clear that there are intriguing things going on in downtown Birmingham. Lonely Planet, the respected travel information source, included Birmingham in its “2016 Best in the U.S.” list, asking, “Could Birmingham be the coolest city in the South?” Food media giant Zagat named Birmingham “America’s No. 1 Next Hot Food City” and the Travel Channel chose Birmingham to its list of “11 Next Great Destinations.” Foodies and fashionistas are not the only groups showing interest in Birmingham. Multifamily investors have been building new developments and acquiring and repositioning existing properties over the past few years. This activity reflects national trends — investors looking for alternatives to top-tier markets and Millennials gravitating to an affordable urban core. Nonetheless, with its burgeoning downtown food and arts scene, Birmingham has earned a second look. Strong Year for Downtown Developers liked what they saw and acted accordingly. In 2014 and 2015, plans …
PELHAM, ALA. — Trillium Capital Resources has arranged an $18.4 million loan for Grand Reserve of Pelham, a 184-unit apartment complex in Pelham, roughly 20 miles south of Birmingham. Trillium arranged the 12-year, fixed-rate loan through Aegon Insurance Group on behalf of the borrower, an apartment operator based in Phenix City, Ala. The borrower used the loan to refinance an existing construction loan.
MOBILE, ALA. — Capital One has provided a $6.5 million Fannie Mae acquisition loan for Colony Park Apartments, a 201-unit garden-style community in Mobile. Chad Thomas Hagwood of Capital One originated the 10-year, fixed-rate loan that features three years of interest-only payments followed by a 30-year amortization schedule. Brandon Pate of Hagwood’s Capital One Multifamily Finance team managed the deal. The undisclosed borrower owns 27 multifamily properties totaling more than 4,500 units in Georgia, Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania and South Carolina.
BIRMINGHAM, ALA. — KeyBank Real Estate Capital has provided an $11 million Fannie Mae loan for Devonshire Place Apartment Homes, a 332-unit affordable housing complex in Birmingham. The property was built in 1971 and purchased by the borrower in 2015. Erik Storz of KeyBank’s commercial mortgage group arranged the 10-year, fixed-rate loan, which the borrower will use to refinance an existing KeyBank bridge loan.