Cushman & Wakefield has arranged sale of a 625-unit portfolio located in Mobile, Alabama. Jimmy Adams and Craig Hey of Cushman & Wakefield represented the seller, PEM Real Estate Group, in the transaction. Entities managed by StoneRiver Company acquired the properties, which include Huntleigh Woods, Southern Oaks and Ashford Place.
“StoneRiver was able to acquire three quality, value-add assets and immediately achieve both yield and scale in the Mobile market,” Hey said. “Investors are continuing to see the metro as a profitable investment market, with a number of portfolio sales occurring in the area.”
The Mobile value-add portfolio consists of 625 units constructed between 1975 and 1983, located in the desirable West Mobile submarket. Each of the three communities had original interiors and therefore offered a legitimate value-add opportunity for the next investor.
“The immediate access to jobs and higher education make this a very attractive submarket to enter, and the physical assets in this portfolio provide us multiple ways to add value,” said Lou Davis, Director of Investments at StoneRiver. “We are thrilled about this acquisition, and look forward to not only transforming these three communities but also continuing to grow our footprint across the Southeast U.S.”
“These three Mobile properties are the final three investments for Fund I,” said Joseph Welden, President at StoneRiver. “We are pleased to have successfully deployed 100% of Fund I in quality value-add properties throughout the Southeast. Our second fund will pursue similar value-add opportunities in attractive markets as we look to continue to deliver quality returns for our investors.”
Cushman & Wakefield’s Southeast Multifamily Advisory Group is the most active firm in the region, with the No. 1 market share based on transactions and sales volume reported to CoStar. In 2017, the group closed $4.8 billion in sales volume through 268 deals and more than 55,000 units. The Birmingham team has closed over $1 billion in sales volume across Alabama, Mississippi, and Northwest Florida since January 2017.
For more information about Cushman & Wakefield’s Southeast Multifamily Advisory Group, visit https://multifamily.cushwake.com.