Berkadia is pleased to announce the sale of Tara Garden Apartments, a 155-unit garden-style multifamily property located in Huntsville, Alabama. Senior Director David Wilson and Associate Director Caleb Frizzell of Berkadia’s Birmingham, Alabama office, completed the sale on behalf of the seller who was also the original developer. The buyer was Welden Field Development, based in Birmingham Alabama, who was attracted to the property due to its strategic location at the epicenter of Huntsville’s major employment centers and its “value-add” upside available through strategic renovation. The transaction closed on July 31 at a price of $7,600,000 equating to $49,032 per unit or $110 per square foot, one of the highest per square foot sale prices of any apartment property ever sold in Huntsville.
Located at 6405 Old Madison Pike, the property was very strategically located across Interstate 565 from the U.S. Space and Rocket Center within one mile of BridgeStreet Towne Center, Cummings Research Park and the main gate of Redstone Arsenal. The property was somewhat unique in that it featured mostly small one-bedroom units and studio units with only eight two bedroom units, all unit with thru-wall HVAC systems and no washer/dryer connections. The average unit size of the 155 units was only 447 square feet. Approximately 30% of the unit interiors had been fully updated prior to the sale, with another 40% partially upgraded. The apartments were constructed in stages between 1979 and 1993 and the property was operating at over 95% occupancy at the time of sale with average quoted rents of $554 per month.
Welden Field plans a dramatic renovation of the property which will include addition of a leasing office, swimming pool, dog park and grilling areas. They are also introducing a new exterior color scheme and will be installing new roofs and new windows. Interior upgrades targeting young professionals will include new stainless appliances, granite countertops, a washer/dryer provided in all units and upgraded cabinets, lighting and flooring.
About Berkadia®:
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets.
To learn more about Berkadia, please visit www.berkadia.com.
