Carter Multifamily Grows Alabama Portfolio with $121M Deal

The firm has acquired four properties totaling 876 units.

Arbor Gates. Image courtesy of Carter Multifamily

Carter Multifamily is expanding its Alabama holdings with the $121 million acquisition of a four-property portfolio with 876 garden-style units in the Mobile, Ala., market. The purchase of the portfolio brings the firm’s assets under management in Alabama to 2,897 units.

The company did not release the seller’s identity but Yardi Matrix lists B&M Management, a commercial real estate investment and asset management firm, as the most recent owner of at least three of the assets—the 184-unit Arbor Gates, 228-unit Lenox Gates and 216-unit Regency Gates. The Gates at Jubilee with 248 units is the fourth asset in the portfolio transaction, according to Carter Multifamily.

Overall occupancies of the properties, built between 1992 and 1999, ranged from 92 percent to 96 percent at acquisition. The properties all offer convenient access to local employment options, dining, shopping and recreation. Community amenities include swimming pools, tennis courts and fitness centers.

Ray Hutchinson, chief investment officer at Carter Multifamily, said in a prepared statement the properties are in high-growth markets where the firm has previously acquired assets and successfully deployed a value-add strategy similar to one the company intends to use with the newly acquired properties. Plans include making operational improvements, upgrading community amenities, renovating unit interiors and improving exteriors.

The properties are located in Baldwin County, described by Carter Multifamily as a robust rental market. Average annual rent growth in Baldwin County from 2012 to 2021 was 3.7 percent and quarterly occupancy rates have remained stable at about 95 percent since 2011. Hutchinson stated the company believes the county will continue to attract residents because of its low cost of living and high quality of life.

Property Details

Lenox Gates is located on nearly 15 acres at 1500 Hillcrest Road in Mobile. It was acquired by B&M Management from B. Blacksher White for approximately $19.4 million in November 2007, according to Yardi Matrix. One-, two- and three-bedroom units range in size from 810 to 1,390 square feet with an average of 1,072 square feet.

Regency Gates, located at 5700 Grelot Road in Mobile, has 11 buildings on 12 acres. B&M Management acquired the property from The Knight Co. for approximately $18.4 million in February 2008, according to Yardi Matrix. The community has one-, two- and three-bedroom units ranging in size from 817 to 1,387 square feet with an average of 1,061 square feet.

Arbor Gates is located at 901 Gayfer Ave. in Fairhope, Ala., on just over 11 acres. B&M Management acquired the property from Robert H. Anderson in December 2007 for an estimated $14.3 million, according to Yardi Matrix. The community has one-, two- and three-bedroom units ranging in size from 840 to 1,240 square feet with an average of 1,069 square feet.

Details on The Gates at Jubilee were not available.

Earlier Deals

Carter Multifamily, which owns, operates and manages a portfolio of 35 multifamily communities in the Southeast United States with more than 8,500 units, has made numerous deals in Alabama in recent years. The Oaks of St. Clair, a 192-unit community in Circle Moody, Ala., was among six properties totaling 1,494 units Carter Multifamily acquired in January from three sellers. The amount paid for the asset was not disclosed but Carter Multifamily received a $318.5 million loan from JP Morgan Chase Bank for the acquisition of all six properties.

In 2020, the firm acquired Summerchase at Riverchase, a 240-unit community in Hoover, Ala., for $26.7 million.

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