BIRMINGHAM, Ala. – December 27, 2018 – Berkadia today announced the $56 million sale of Wildwood Crossings Apartments, a 520-unit Class B garden-style multifamily property in the city of Birmingham, Alabama. Senior Managing Director David Oakley, Senior Director David Wilson and Associate Directors Caleb Frizzell and Abe Maddox of Berkadia’s Birmingham office listed and brokered the transaction on behalf of the seller.
“This institutional-quality asset had been managed by MDIC Management, based in Birmingham, since its initial construction,” Oakley said. “While the property featured forward-thinking design and floorplans and had been well-maintained, less than 7 percent of the units had been renovated and its rental rates were much lower than the competing properties in the Lakeshore submarket. It represents one of the best value-add apartment opportunities in the state of Alabama.”
The recent uptick in income and job growth underpinned healthy apartment fundamentals in Greater Birmingham during 2018, and effective rent is forecast to advance 2.7 percent annually to $928 per month by year-end 2019, according to Berkadia’s 2019 Forecast report. Absorption exceeded inventory growth to push up average apartment occupancy to a year-end post-recession high. At 93.9 percent, the occupancy rate was up 60 basis points annually.
Wildwood Crossings hit the market in late May and received 29 offers. The buyer was White Eagle Property Group, LLC, a private-equity group based in New York. Meridian Capital Group provided a new first mortgage using a Freddie Mac execution. White Eagle will initiate a significant renovation of the unit interiors as well as upgraded and new amenities community-wide.
“Wildwood Crossings will be a nice complement to our portfolio,” said Jeff Weiskopf, Chairman & CEO of White Eagle Property Group. “We’re planning upgrades to the kitchens and bathrooms to create a next-level experience for our residents.”
Wildwood Crossings was completed in 1998 and was the first large apartment community to be constructed in the Lakeshore area of Birmingham, a high-growth area that has since experienced substantial new apartment and commercial development. The property offers an exceptional location within a 15-minute drive of downtown Birmingham and Samford University, while also very convenient to Red Mountain Park and the affluent Ross Bridge mixed-use development.