BIRMINGHAM, Ala. – October 4, 2019 – Berkadia announced today the sale of The Park at Sunderland, a 268-unit, Class B, garden-style multifamily property in Birmingham, Alabama. Senior Managing Director David Oakley, Senior Director David Wilson and Associate Directors Caleb Frizzell and Jay Briley, all of Berkadia’s Birmingham, Alabama office, completed the $20.1 million sale on behalf of the seller, Florida-based Blue Magma Residential. The buyer was Massachusetts-based Vazza Real Estate Group, and the deal closed on September 26.
“Sunderland is the definition of work force housing, making this an attractive property for the buyer. The property offers residents great floor plans, easy access to major employers in the area and a quick commute into downtown Birmingham,” said Oakley. “Residents also find this community appealing given its recent interior and exterior upgrades and price point. Rents in the Birmingham core metro area continue to grow at an accelerated pace given job growth and housing demand, which bodes well for communities like Sunderland that are just outside the city center.”
As a well-maintained product built in the 1980s, the buyer anticipates continuing amenity and interior upgrades started by the former owner, making this an attractive rental community and home for residents for years to come.
According to local Berkadia data, rental demand in Birmingham outpaced inventory growth at the metro level as of the second quarter of 2019. Leasing activity was more than three times the 196 market-rate units delivered since mid-2018, which were all added in the Central Birmingham submarket, leading to a 70-basis-point annual increase in metrowide occupancy to 94.8 percent in the second quarter of 2019. Apartment operators capitalized on the rise by accelerating rent growth. After advancing 2.4 percent during the year prior, Greater Birmingham effective rent advanced on average 3.9 percent since mid-2018 to $955 per month in June 2019.
Located at 660 Valley Crest Drive, The Park at Sunderland is less than 10 miles from downtown Birmingham and a two-minute drive to Northeast Birmingham’s largest employers. The property features one-, two- and three-bedroom floor plans with washer/dryer connections, patios and balconies and dishwashers. Community amenities include two swimming pools, a laundry center, a recently updated fitness center, a tennis court, a clubhouse and picnic areas with grills. Residents are afforded convenient access to Highway 79, which leads directly to downtown Birmingham. Average market rent for the property is $776 per month.