ATLANTA and BIRMINGHAM, Ala. – September 18, 2018 – Berkadia today announced the $13.9 million sale and $10.5 million financing for Arbor Village Apartments, a garden-style multifamily property in Muscle Shoals, Alabama. Senior Managing Director David Oakley and Senior Director David Wilson of the Birmingham, Alabama office secured the sale on behalf of the seller, Birmingham-based Engel Realty Company. Director Josh Finley, of the Berkadia Atlanta office, worked to secure the permanent acquisition financing through Fannie Mae for Arbor Village Apartments, LLC.
The 10-year loan features a 4.91 percent fixed interest rate, a 30-year amortization schedule and a 75 percent loan to value ratio and four-years interest-only. The deal closed on September 12.
“Having grown up in Florence, Alabama—just across the Tennessee River from Muscle Shoals—this was a special assignment for myself and our team,” said Oakley. “Arbor Village was well-received in the marketplace. We received several competitive offers through our marketing efforts, and we were very pleased with the outcome.”
“Arbor Village will continue to thrive given the tight supply and demand fundamentals in the Shoals area,” Oakley added. “The opening of the new $250 million North Alabama Medical Center in Florence this fall is just one of the many highlights in the area. We anticipate additional transaction velocity in the near-term as the Shoals area continues to prosper and people discover all that this special place has to offer.”
“Arbor Village showcases the ample investment opportunities in secondary and tertiary markets that can significantly benefit from light value-add strategies,” said Finley. “Smaller markets such as Muscle Shoals are becoming highly sought-after targets for buyers who are no longer able to compete in major metropolitan areas due to the continued influx of foreign and institutional capital keeping capitalization rates compressed.”
Finley also recently secured $10.99 million in financing for 37 Treeview Apartments, a multifamily property in Lithonia, Georgia. The borrower was Delaware-based 37 Treeview Drive Lithonia LLC. The Freddie Mac acquisition financing features a seven-year term with a 3.67 percent interest rate, a 30-year amortization and a 70 percent loan-to-value ratio.
According to Berkadia’s Mid-Year Powerhouse Poll, experts at Berkadia ranked the Southeast as a top region expected to see the greatest amount of deal activity for the remainder of 2018. In turn, Berkadia’s Southeast teams have seen tremendous lending and investing activity so far this year. In 2018, Josh Finley has secured nearly $124 million in financing across the Southeast region to-date. Berkadia’s Birmingham Investment Sales office has closed over $115 million in apartment transactions in 2018 and has almost $200 million in additional listings.