BIRMINGHAM, Ala. — December 18, 2020 — Berkadia announced today the sale of Valora at Homewood, a 722-unit garden-style multifamily property attractively located minutes from downtown Homewood and just over the mountain from downtown Birmingham. This deal represents a record high price-per-unit for large Class B product of this vintage in the Birmingham market. Senior Managing Director David Oakley, Senior Director David Wilson and Associate Director Caleb Frizzell of Berkadia’s Birmingham, Alabama office completed the sale on behalf of the seller, Dallas-based LURIN. The buyer was a private equity group based in the Washington, D.C. area, and it was their first Alabama acquisition. The deal closed on November 19.
“LURIN had recently completed an extensive exterior and interior renovation of the property spending over $27,800 per unit completely transforming the character of this strategically located asset,” said Wilson. “While 89 percent of units had been renovated, the buyer plans additional renovations capitalizing on the strength of location and enhancing the Phase II amenities and interior finishes.”
Wilson added, “Investor interest in Valora at Homewood was extremely high, despite the marketing effort being launched in early July as the COVID-19 pandemic was still disrupting the economy and markets. The ability for a buyer to assume a Freddie Mac loan during the marketing process was very attractive and removed some of the uncertainties associated with financing during that time period. This calculated marketing tactic and timing also took advantage of pent-up capital seeking a home as few properties were available in July.”
Located at 915 Valley Ridge Drive, the 334-unit Phase I was located in the city of Homewood, and was built in 1969, while the newer 388-unit Phase II was built in 1978 and located in the city of Birmingham. Valora at Homewood includes one-, two- and three-bedroom floorplans with walk-in closets and patios or balconies. Community amenities include two swimming pools with sundecks, a fitness center, a laundry facility, two tennis courts and a clubhouse. Residents are afforded convenient access to Interstate 65, U.S. Highway 280, Birmingham Botanical Gardens and Vulcan Park and Museum.