A joint venture of Blue Magma Residential LLC and Auerbach Opportunity Fund I LP has received a $14.4 million bridge loan to acquire Hillside Village and Twickenham Village, two neighboring garden apartment rental communities in Huntsville, Ala.
Eyzenberg & Co. arranged the financing with SunTrust Bank. Proceeds were used to cover a portion of the acquisition and subsequent renovation of the property.
“The communities offer plenty of upside potential, with proactive management and selective improvements,” David Eyzenberg, Eyzenberg & Company’s president, told MHN. “Also, Huntsville is one of the fastest growing metropolitan areas in Alabama. It is experiencing significant increases in population and job growth.”
Moreover, the strong value-add opportunity made this perfect for a bridge loan, one of the most liquid sectors of the capital markets today.
Located at 4515 Bonnell Dr., NW and situated on 13.25 acres, Hillside Village consists of 223 units comprising 179,000 square feet. Twickenham Village, located at 5001 Galaxy Dr., NW, consists of 152 units totaling 138,338 square feet. The property is situated on 12.16 acres.
A Growing City
Huntsville is considered one of Alabama’s top growing metropolitan areas and between 2010-2017, recorded the largest numeric increase in population according to the Center for Business and Economic Research in The University of Alabama’s Culverhouse College of Business.
Both properties are within 1.5 miles from the University of Alabama at Huntsville and just 4.5 miles from the downtown CBD.
“According to the partnership, Hillside Village will be rebranded as The Park at Summerhill, with nearly $1.8 million set aside for interior and exterior upgrades,” Eyzenberg said. “Twickenham Village will be renamed as The Park at Bellingham, with approximately $1.3 million set aside for renovations.”
In addition to Eyzenberg, Jeff Conti, Eyzenberg & Co.’s managing director and Diana Davidson, the firm’s associate, were part of the team that arranged the loan with SunTrust Bank.
Blue Magma Residential’s current portfolio totals more than 9,000 apartment units in Florida, Georgia, Alabama and Mississippi, including 14 properties in the state of Alabama.
In May, Eyzenberg & Co. arranged a $28 million bridge loan for Woodland Ridge Apartments in Woodridge, Ill., and earlier this month, Eyzenberg & Co. tapped Greystar to develop Grove Park, a 12.3-acre student housing community in Chapel Hill, N.C.