Garden Community Fetches $28M in Birmingham

The acquisition of the 24-building property was funded by a 12-year, $20.7 million loan held by Fannie Mae.

Bluerock Real Estate has sold the Chace Lake Villas, a 264-unit community in Birmingham, Ala. to the Massirman Group for $28.3 million, according to public records. The buyer financed the property acquisition with a $20.1 million loan originated by Fannie Mae. Berkadia secured the fixed-rate, 12-year loan on behalf of the new owner.

The Chace Lake Villas community was 97 percent occupied at the time of the sale. The property last changed hands in September 2012 for $21.7 million, according to Yardi Matrix, when Bluerock acquired the asset from Bell Partners. Prior to this transaction, The Davis Cos., which constructed the community in 1996, sold the development for $17 million in early 2003.

Access and amenities

Located at 98 Chace Lake Pkwy., the community sits approximately two miles southwest of the intersection of interstates 65 and 456. Chace Lake Villas is a short distance from the Riverchase Galleria, a 150-store mall offering a wide variety of shopping and dining options. The property features a mix of one-, two- and three-bedroom rental units across 24 buildings, ranging in size from 591 to 1,339 square feet. Resident amenities include a fitness center, a clubhouse, tennis and basketball courts, a swimming pool and laundry facilities.

“MAG was able to capitalize on very attractive Fannie Mae 12-year fixed rate financing with a five-year interest only period that allows for more than ample cash flow to fund capital improvements and enjoy stable returns for a long term period,” said Christopher Apone, managing director of Berkadia’s South Florida office, in a prepared statement. “Fannie Mae views Chace Lake Villas as an exceptional opportunity to lend on a well-located, high-quality asset while at the same time forging a new relationship with an active and well-capitalized sponsor.”

In October last year, Bluerock acquired a 320-unit core multifamily property in northwest San Antonio.

Images courtesy of Yardi Matrix