Westside Capital Group acquired the 1,060-unit The Park at Hoover in Birmingham
Birmingham, Ala. (March 17, 2021) — Berkadia announced today the sale of The Park at Hoover, a 1,060-unit garden-style multifamily property located on 101 acres in the heart of the City of Hoover, Birmingham’s largest suburb. This Class B property is the largest apartment property in the state. Senior Director David Wilson, Associate Director Caleb Frizzell and Director Steve Nunnelley of Berkadia’s Birmingham, Alabama office arranged the sale on behalf of the seller. Senior Managing Director Charles Foschini and Managing Director Chris Apone of Berkadia’s Miami office arranged a total of $75.56 million in financing on behalf of the buyer, Miami-based Westside Capital Group. Westside’s fully integrated institutional property management arm WS Living will manage the property moving forward.
Berkadia’s Alabama team had previously listed and sold the property in May 2015. The owners had initiated major changes at the property in recent years, including completely updating the 6,685-square-foot clubhouse, painting the exteriors, upgrading certain amenities and renovating 10% of the unit interiors to prove the “value add” upside.
Wilson noted, “Investor interest in The Park at Hoover was extremely high, although the scale of the asset limited the buyer pool to mostly large private equity groups and institutional owners. The massive size was particularly appealing to buyers new to Alabama as it would allow them to enter the market with scale. The property had been managed by Birmingham-based Arlington Properties, who did a great job maintaining the asset and managing the renovations.”
Berkadia originated two Freddie Mac-backed loans for sponsor Westside: a $66.56 million loan for Phase 1 and a $9 million loan for Phase 2. Both were 10-year, floating rate loans.
Regarding financing, Foschini added, “The relationship with the agencies and our client continues to grow. Westside took a creative approach to value from inception by recognizing the differences in the asset and closing what was once run as one large property into two separate loans. Similarly, Freddie Mac, in this case, provided extremely aggressive terms and a floating-rate loan, which provides both an enviable rate and immense flexibility in terms of a future sale or refinance.”
“We see Alabama as a strategic market for Westside’s growth within the Southeastern United States that we focus on, and we want to build a long-lasting reputation of excellence within the local marketplace,” said Jakub Hejl, founder and president of Westside, a diversified real estate investment firm. “The timing of this investment demonstrates Westside’s capital strength to close large and complex transactions within tight timeframes.”
Located at 2135 Centennial Drive, the 920-unit Phase I is located in the City of Hoover and was built in 1987-88, while the newer 140-unit Phase II was built in 1996 and located in unincorporated Jefferson County. Community amenities include four swimming pools, one of the largest fitness centers in the market, four tennis courts, a sports court, dog park, playground and a clubhouse. The property is adjacent to the largest retail node in the Birmingham market, anchored by the Riverchase Galleria. It is also extremely convenient to Interstate 459, Interstate 65 and Highway 31.