Huntsville, Ala. (September 22, 2020) – Berkadia announces it has secured a $34.91 million loan for the acquisition of Ascent at Jones Valley, a 431-unit apartment community located in Huntsville, Alabama, one of the top rent growth markets in the nation. and Senior Managing Director Charles Foschini and Managing Director Chris Apone of Berkadia’s Miami office secured the financing on behalf of borrower, an entity controlled by Wicker Park Capital Management LLC of Savannah, Georgia.
Berkadia originated, and Freddie Mac purchased, the 10-year, floating-rate loan with partial interest only and a 75 percent LTV.
“With its quality construction, recent renovations and multiple townhome options for residents to choose from, Ascent at Jones Valley is one of the more sought-after complexes in this submarket,” said Foschini. “Freddie Mac continues to be a terrific solution for borrowers in both fixed and floating rate executions. In this case, Freddie recognized the borrower’s success and acumen in this metro area with other projects and provided a loan well suited to improving the asset’s profile within its competitive set. The brilliance of a floating-rate execution is that it allows both a low interest-only base rate and the ability to transition the asset to a new loan upon a sale or future refinance, as value is added to the community and income improves.”
Known as “Rocket City” for its conglomeration of aerospace/aviation companies, Huntsville is home to Redstone Arsenal, Cummings Research Park, The Marshall Space Flight Center (MSFC), Blue Origin, The Boeing Company, and GE Aviation, among others. According to Berkadia Research, Huntsville apartment occupancy enjoyed a record high in 2019, and despite an economic slowdown in Q2 2020, effective rents rose nearly 7 percent year over year, and occupancy was up 20 basis points year over year to 96.8 percent.
Located at 1225 Williowbrook Drive SW, Ascent at Jones Valley was built in 1978 and has received over $4.5 million in upgrades from prior owners since 2016.
The property consists of one-, two- and three-bedroom units with an average size of 1,211 square feet. Roughly a third of the property’s units are two-and three-bedroom townhome floor plans. Community amenities include a fitness center, coffee & tea bar, leasing/business office, pet park and play area, playground, two swimming pools, a lighted tennis court and grilling/picnic areas.
Strategically positioned less than 2 miles east of Memorial Pkwy (US-231), one of Huntsville’s primary transportation arteries, Ascent at Jones Valley is centrally located in South Huntsville among the metro’s most affluent suburbs and quality retail destinations.