BIRMINGHAM, Ala. – June 7, 2017 – Berkadia today announced the recent sales of Madison at Shoal Run and Mountain Lodge, two multifamily properties located in Birmingham, Alabama. Senior Managing Director David Oakley completed the sales for a combined $40.75 million on behalf of the seller, The Embassy Group, LLC. The buyer was Dasmen Residential, based out of New York.
“At the time of sales, Madison at Shoal Run had recently undergone interior upgrades on more than half the units. The buyer has plans to continue interior renovations throughout the remaining units,” Oakley said. “Mountain Lodge has gone through interior upgrades on just under a quarter of the property’s units, along with renovations to the office and fitness center. The buyer has exciting plans for Mountain Lodge and anticipates a larger scale capital program in the coming months. Renovations will include amenity upgrades, exterior painting, and heavy landscaping”
Built in 1986, Madison at Shoal Run features one, two, and three bedroom floor plans. The 276 units are equipped with hardwood style flooring, fireplaces and lakefront views. Community amenities include a clubhouse, a state-of-the-art fitness center, tennis courts, and a dog park. The property sold for $23 million.
Mountain Lodge, which sold for $17.75 million, features 254 one-, two- and three-bedroom units with spacious closets, ceramic tile, extra storage and washer/dryer connections. Residents can enjoy a pool with a sun deck, a fitness center, a picnic area and a playground. Built in 1973, Mountain Lodge was 91 percent occupied at the time of sale.
The sales of both these properties represents continued interest in the Birmingham multifamily market from outside investors. Both properties are well-located and boasts strong demand fundamentals that the buyer recognized quickly.
Mountain Lodge, situated in Vestavia Hills, represents 254 units out of approximately 2,000 that serve all of Vestavia Hills proper. With a population approaching 37,000 in Vestavia, the home ownership rate of approximately 95 percent is well above the national average 63.7 percent as of Q4 2016, according to the U.S. Census Bureau. This, coupled with Vestavia’s first-in-class public school system, point to strong future rental demand.
Madison at Shoal Run, in a more suburban location compared to Mountain Lodge, will benefit from recent development and activity on the U.S. Highway 280 and U.S. Highway 119 corridor. Madison at Shoal Run also has access to one of Birmingham’s top school systems, Oak Mountain.