Alabama Community Trades for $73M
- Oct 17, 2019
Multifamily investment firm BH Equities has acquired The Falls and Woods of Hoover, a 696-unit community in the Birmingham suburb of Hoover, Ala., for $73 million. The seller was Heritage Income Properties.
Newmark Knight Frank handled the sale of the 32-building asset located at 3801 Galleria Woods Drive. The brokerage’s Senior Managing Directors Bo Flurry and Justin Uffinger represented both the buyer and seller. The property, which changed hands for the equivalent of $104,885 per unit, was 94 percent occupied at the time of the deal, according to a statement by NKF.
The Falls and Woods of Hoover comprises two formerly separate properties that were merged into a single community near the Riverchase Galleria shopping mall. The seller purchased the 240-unit Falls at Hoover for $25.9 in January 2015, then bought the 456-unit Woods of Hoover for $49.1 million in May of that year, before combining and rebranding the assets, Yardi Matrix records indicate.
Making moves in Hoover
According to NKF, the property’s location advantages and renovation upside along with Hoover’s limited pipeline of new supply created a strong value-add scenario for the buyer.
Hoover is the largest suburb of Birmingham, with a population exceeding 88,000. The median household income stood at $81,038 in 2017, up 3.8 percent from the previous year, according to Data USA. The median age of the population was 37.9 as of 2017.
This past May, First Communities Management acquired Park at Galleria, a 431-unit community in Hoover, for $38 million. InterCapital Partners sold the Class B asset at 550 Hampton Park Drive. In March 2018, a joint venture between Balfour Beatty Communities, Apex One Investment Partners and Torchlight Investors snapped up Riverchase Landing, a 468-unit Class B community at 200 River Haven Circle for $39.2 million.
BH Equities, a sister company of property management heavyweight BH Management Services, teamed up with L5 Investments and Odyssey Properties Group in May to purchase The Crossing at Barry Road Apartments, a 624-unit value-add community in Kansas City, Mo.