BIRMINGHAM, Ala. – July 26, 2018 – Berkadia today announced the $18.1 million sale of Villas at Bon Secour Apartments, a garden-style multifamily property in Gulf Shores, Alabama. Senior Director David Wilson and Senior Managing Director David Oakley, both of the Birmingham, Alabama office, completed the sale on behalf of the seller, Villas at Bon Secour Owner, LLC, an entity of Chicago-based Adams LaSalle Realty, which also managed the property. The buyer was an entity of Pillar Income Asset Management, based in Dallas, and the sale closed on July 19.
The property sold for approximately $90,500 per unit, and the buyer assumed the existing mortgage that was serviced by Berkadia Commercial Mortgage with an approximate loan balance of $11.5 million and a fixed interest rate of 3.95 percent. The property was over 95 percent occupied at the time of sale.
Built in 2008, Villas at Bon Secour is comprised of 200 units situated across 11 two-story garden-style buildings. The community’s resort-style setting is enhanced by lush tropical landscaping. Residents are offered four different floor plan options averaging 780 square feet. Units range from a 648 square-foot, one-bedroom/one-bathroom design to a 990 square-foot two-bedroom/two-bathroom design. The units feature gourmet-style kitchens including a breakfast nook, nine-foot ceilings and connections for washers and dryers.
Located at 19000 Oak Road West, the property is immediately across the street from the 100-acre Gulf Shores Sports Complex, just 4.5 miles to the sugar-white sand beaches of Gulf Shores. The property is midway between the core areas of Foley and Gulf Shores and is in close proximity to the Craft Farms mixed-use development, which features a large retail center and a 36-hole golf course. Baldwin County is the fastest-growing county in Alabama with the second-lowest unemployment rate in the state.
“The growth pattern in Baldwin County has shifted from a great story to a dynamic reality,” said Oakley. “The Baldwin County apartment market continues to thrive due to accelerated migration and job growth. This influx of activity has led to an improving demand for rental housing, pushing stronger occupancy rates as well as rent increases. Villas at Bon Secour is well-positioned, with its proximity to major employment and retail centers.”
Gulf Shores combines the pleasures of a relaxed, coastal quality of life with limitless opportunities for economic growth. Nestled on the Alabama Gulf Coast, the area’s tourism industry attracts over 5 million visitors annually, injecting nearly $3 billion of visitor spending into the local economy. Gulf Shores is home to the fourth busiest airport in Alabama, Jack Edwards National Airport, which serves as a vital aviation hub for South Alabama and the prime destination for travelers arriving for business and pleasure.