Hendricks-Berkadia Negotiates Portfolio Sale of Five Apartment Communities in Mobile, Ala for $98 million

BIRMINGHAM, Ala. --- Hendricks-Berkadia Apartment Real Estate Advisors, one of the nation’s largest and most active multifamily investment banking and research companies, recently participated in negotiating of the sale of five apartment communities in Mobile, Ala. for $98 million. David Oakley, senior vice president of Hendricks-Berkadia in Birmingham, said the buyer, Colony Hills Capital, an investment group based in Wilbraham, Mass. paid $98 million to acquire the portfolio of properties that includes 2,000 rental apartment units. Oakley negotiated the transaction along with Tom Hinton of Hinton Properties and Richard Weavil of The Weavil Company. “In recent months, several large corporations including France’s Airbus and Austal USA have announced plans for the investment of over $600 million into manufacturing facilities in Mobile,” Oakley said. “These announcements in connection with the already burgeoning Mobile economy point to strong demand fundamentals related to the multi-family sector,” he said. According to Hendricks-Berkadia research, positive apartment absorption trends continue in the Mobile Bay area. In 2012, the average vacancy rate for the metro area was 6.2 percent, compared to 8.6 percent a year prior. Vacancy rates are expected to hold steady well into 2013, with a 6.1 percent average for the metro area. Occupancy rates have increased 2.5 percent over the past 12 months, which should lead to significant rent growth going forward. The rental apartment properties sold include Cabana Apartments, located on Michael Blvd., Pathways Place on Pathway Place, Sandpiper on Government Blvd., Windsor Place on Airport Blvd. and Yester Oaks Townhouse Apartments on Yester Oaks Drive.