Multifamily Market Overview
HUNTSVILLE, ALABAMA MAY 2021
Presented to:
Alabama CCIM Chapter for the 2021 North Alabama Commercial Market Symposium
By: David Wilson, MAI
•
David’s 1st Huntsville Apartment Market Survey in 1994 introduced annual statistical tracking and reporting of Huntsville occupancy, rental rates, rent growth, concessions, absorption, submarket trends and new development – way before Axiometrics, CoStar, etc.
•
David continued Huntsville’s market reporting under the Rock Apartment Advisors banner from 2006 until 2014.
•
As a broker, David continues to regularly track new development, transactions and market trends and keeps the most detailed data on Huntsville new construction than anyone.
•
His 27-year career in Alabama markets includes 13 years as an apartment broker, over 20 years as a commercial appraiser of which 10 years was exclusively focused as an apartment market analyst and apartment appraisal specialist.
•
As an apartment broker, over his 6+ years with Berkadia Real Estate Advisors and the preceding 7 years with Rock Apartment Advisors, David has brokered over $850 million in apartment and/or apartment land transactions.
•
Over the past 27 years in Huntsville, David has personally tracked annual performance of every property with 60 or more units for no less than 19 years and has personally tracked and documented the lease-up, absorption and on-going performance of every new property built since 1994. Over his 20 years as an appraiser, he has also appraised roughly 75% of Huntsville’s conventional apartment properties over 60 units, at least once.
•
David lives in Huntsville with his wife Beth, and they have one son and one daughter.
25 YEARS OF MARKET ANALYTICS
25+ Years of Analytics and 13 Years of Brokerage
NOTE: David has not operated as a practicing appraiser since joining Berkadia Real Estate Advisors in Dec. 2014
2
TOPICS TO COVER
• Market Fundamentals
Station at Clift Farm
Henry House at Clift Farm
Station at Town Madison
The Avenue at Madison
• New Construction • Transaction Activity
3
MARKET FUNDAMENTALS
POPULATION GROWTH TRENDS - ANNUAL GROWTH Top 5 Alabama Counties 2010 to 2020
MARKET FUNDAMENTALS 8,000 7,000 6,000 5,000 4,000 3,000
Top 5 Counties Population Trend – 2010 - 2020
2,000 1,000 -
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
Madison County
3,509
3,200
3,941
3,209
3,221
3,791
5,076
5,325
5,161
6,906
Baldwin County
3,458
3,624
4,775
4,328
3,795
4,686
4,950
5,334
5,494
5,722
Limestone County
2,385
1,783
1,595
1,691
974
1,300
1,248
2,055
2,937
3,092
Shelby County
1,932
2,981
3,139
2,258
2,701
2,491
2,316
2,023
2,299
3,252
Lee County
3,379
4,476
3,273
2,739
2,480
2,284
2,362
2,398
809
1,816
Madison County
*Sources: U.S Census Bureau, 2020 Census data
Baldwin County
Limestone County
Shelby County
Lee County
Madison County’s population growth rate has doubled in past 5 years and is now growing by 19 people per day
5
MARKET FUNDAMENTALS
•
Madison County grew by 44,640 from 2010 to 2020
•
Huntsville’s MSA population grew by 10,000 from 2019 to 2020
Population Trends
•
Prior years MSA grew by 5,000 from 2010-2017, then 7.3k in 2018, and 8.6k in 2019.
•
Population Growth Trend is accelerating.
•
Due to FBI, Toyota-Mazda and scores of other job drivers, the outlook for continued accelerated growth is very favorable
6
260,000
MARKET FUNDAMENTALS 245,000
230,000
Huntsville MSA Job Growth – 2011 - 2020
215,000
200,000
2011
Huntsville MSA
2012
2013
2014
2015
2016
2017
2018
2019
2020
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
210.1 K
212.0 K
215.7 K
217.4 K
222.4 K
227.7 K
232.7 K
238.7 K
245.2 K
240.9 K
*Sources: Bureau of Labor Statistics
7
MARKET FUNDAMENTALS
Employment Trend 2018 - 2021 Source: Huntsville/Madison County Chamber of Commerce, Huntsville Metro Economic Update, March 2021
8
10.0%
MARKET FUNDAMENTALS
8.0%
6.0%
4.0%
Unemployment Rate Comparison – 2011 - 2021
*Sources: Bureau of Labor Statistics
2.0%
0.0%
2011
2012
2013
2014
2015
Huntsville MSA
2016
2017
2018
Limestone County
2019
2020
2021
Madison County
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021*
Huntsville MSA
8.3%
7.1%
6.4%
6.1%
5.5%
5.2%
4.0%
3.5%
2.6%
4.6%
2.5%
Limestone County
8.6%
7.0%
6.3%
6.1%
5.5%
5.3%
4.2%
3.5%
2.7%
4.3%
2.1%
Madison County
8.2%
7.1%
6.4%
6.1%
5.5%
5.1%
4.0%
3.5%
2.6%
4.6%
2.5%
*YTD
9
12.0%
MARKET FUNDAMENTALS 9.0%
6.0%
3.0%
Unemployment Rate Comparison – Last 12 Months
*Sources: Bureau of Labor Statistics
0.0%
Huntsville MSA
Limestone County
Madison County
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Huntsville MSA
10.0%
6.0%
6.3%
6.0%
5.6%
5.2%
3.3%
2.9%
2.6%
2.9%
2.7%
2.5%
Limestone County
10.7%
5.7%
5.6%
5.1%
4.8%
4.5%
2.8%
2.5%
2.3%
2.5%
2.3%
2.1%
Madison County
9.9%
6.0%
6.5%
6.2%
5.8%
5.4%
3.4%
3.0%
2.7%
3.0%
2.8%
2.5%
10
•
Employment has rebounded quickly since April – a testament to a resilient work force and the type of jobs
MARKET FUNDAMENTALS
that are flourishing •
Huntsville’s unemployment rate trending down fast and is close to per-COVID levels
•
Employment Trends
Outlook for continued strong employment growth is very favorable, especially given the COVID-induced shifts from large metros to smaller markets
•
Huntsville, as a leading STEM city, is well positioned to appeal to young/smart professionals seeking a great quality of life
•
A MIGRATION is occurring – flocking to Huntsville 11
ALABAMA APARTMENT MARKET SUMMARY
Market
CoStar Data 2Q2021
Total Units in Survey 12 Mo. Delivered Units 12 Mo. Absorption Total
Occupancy Rate
12 Mo. Asking Rent Growth %
Birmingham
57,268
758
627
91.4%
4.8%
Huntsville
29,622
1,167
946
94.1%
8.0%
Montgomery
19,426
22
335
91.6%
6.0%
Mobile/Daphne County
21,028
253
696
93.3%
9.3%
Total
127,344
2,200
2,604
92.4%
6.47%
12
ALABAMA APARTMENT MARKET SUMMARY
Market
Axiometrics Data 2Q2021
Birmingham
Effective Rent per Effective Rent per Effective Rent Growth Occupancy Change Annually Occupancy Rate Unit SF Annually (Basis Points)
$1,028
$1.00
2.60%
95.2%
40
Huntsville
$974
$0.97
7.50%
97.6%
80
Montgomery
$869
$0.84
4.40%
95.7%
90
Mobile/Daphne County
$903
$0.92
7.20%
96.10%
160
13
$1000
98%
$900
96%
$800
94%
$700
92%
$600
90%
$500
88%
Effective Rent
Most Recent Survey Attributes Average Occupancy: Average Effective Rent: Average Eff. Rent/SF:
Sources: Berkadia Research; Axiometrics
97.6% $960 $1.00
1Q21
3Q20
1Q20
3Q19
1Q19
3Q18
1Q18
3Q17
1Q17
3Q16
1Q16
3Q15
1Q15
3Q14
1Q14
3Q13
1Q13
3Q12
1Q12
3Q11
1Q11
1Q10
Huntsville Area Rent & Occupancy Trends Since 2010
3Q10
MARKET FUNDAMENTALS
Occupancy Rate
Most Recent Survey Attributes Total Properties: Total Units: Average Year Built: Average Unit Size (SF):
116 23,608 1993 962
14
Current Concession Value
Most Recent Survey Attributes Average Concession: Average % of Asking Rent: Sources: Berkadia Research; Axiometrics
$20.00 2.1%
1Q21
3Q20
1Q20
3Q19
1Q19
3Q18
1Q18
3Q17
1Q17
3Q16
1Q16
3Q15
1Q15
3Q14
0% 1Q14
$0 3Q13
20%
1Q13
$15
3Q12
40%
1Q12
$30
3Q11
60%
1Q11
$45
1Q10
Huntsville Area | Concession Trends Since 2010
80%
3Q10
MARKET FUNDAMENTALS
$60
Current Period Concession Level
Most Recent Survey Attributes Total Properties: Total Units: Average Year Built: Average Unit Size (SF):
116 23,608 1993 962
15
MARKET FUNDAMENTALS
Huntsville Area | Trends Over the past three years, Huntsville has sustained one of the highest effective rent growth trends and highest occupancy rate averages in the Southeast U.S. – and has been one the Top Effective Rent Growth Markets in the nation. Sources: Berkadia Research; Axiometrics
16
MARKET FUNDAMENTALS
Huntsville Area | CoStar 2Q2021 Stats
Property Class
Units
Vacancy Rate
Asking Rent
Effective Rent
4 & 5 Star
9,652
10.3%
$1,254
$1,254
3 Star
15,244
3.5%
$910
$906
1 & 2 Star
4,726
4.7%
$670
$667
Overall Market
29,622
5.9%
$1,005
$999
Property Class
Units
Vacancy
0.5%
Net Absorption
946 Units
Net Deliveries
1,167 Units
Asking Rent Growth
8.0%
Effective Rent Growth
8.0%
Sources: CoStar
17
MARKET FUNDAMENTALS
• Best Apartment Market Fundamentals in over 25 Years – Very Solid • Highest Sustained Occupancy Pattern – 94%+ for 4 Years Running
Conclusion
• Record-Setting Rent Growth – Again – One of the highest rent growth rates in the country
• Low Concession Usage • Why – Great Job Growth & Minimal Deliveries
18
New Construction
NEW UNIT DELIVERIES - HISTORY & FORECAST Huntsville/Madison, Alabama as of May 1, 2021 BE ADVISED: THE 2022 AND 2023 FORECAST ASSUMES ALL IDENTIFIED "FUTURE START" PROPERTIES WILL GET DELIVERED, WHICH WILL NEVER HAPPEN - SEE NOTE #5 BELOW.
NEW CONSTRUCTION
7,000 6,000 5,000 4,000
History & Forecast May 2021
3,000 2,000 1,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Conventional - Speculative
0
0
Conventional - Underway or Delivered 655 355
0 72
0
0
0
0
160 860 781 644
Conventional - Underway or Delivered
• • • • •
0 0
0
0
0
0
0
0
0
0
0
2021 2022 2023 F F +F 0
852 4,636
189 538 557 818 708 750 142 777 632 2,674 3,749 1,783 Conventional - Speculative
NOTE 1: The 2023+ Forecast reflects properties that are forecast to be delivered over a multi-year period from 2023 and later. Highest Sustained Occupancy Pattern – 94+ for 3 Years Running NOTE 2: The "Conventional" line-item totals for Forecast years include only those properties actively under construction as of May 1, 2021. NOTE 3: The "Conventional - Speculative" line-item totals for Forecast years reflect properties that had not yet started as of May 1, 2021 and are therefore speculative. NOTE 4: Labor and supply chain changes triggered by the COVID-19 pandemic are affecting the timing for all projects making the Forecast data very uncertain and fluid. NOTE 5: In the previous 20+ years of tracking the Huntsville pipeline, it is most common for fewer than 30% of units identified as "Future Starts" to actually be delivered in any given year.
Source: David Wilson, MAI
20
NEW CONSTRUCTION
Huntsville Pipeline May 2021
Source: David Wilson / Berkadia (David’s Primary Research)
21
NEW CONSTRUCTION
New Starts in 2021
NEW STARTS IN 2021 #
Name
1
The Kelvin
2
Submarket
Street
Type
301
West Huntsville
Enterprise Way
Garden
Metronome (at Mid-City)
298
West Huntsville
MidCity
Elevator, air-conditioned
3
Edison
252
West Huntsville
Nance Road
Garden
4
No Name - Hays Nature Preserve
336
Big Cove
Highway 431
Garden
5
No Name - Novare Apartments
290
Madison - South
Lime Quarry Rd/ I-565
Elevator
6
Argento at Oakland Springs
264
Madison - South
Browns Ferry Road
Garden
7
The Foundry
274
SW Huntsville
Governors Drive / I-565
Elevator
8
Twenty Twenty at Providence
364
West Huntsville
Providence Main Street
Elevator, air-conditioned
TOTAL STARTS
Total Units
2,379
Source: David Wilson, Berkadia Real Estate Advisors
22
NEW CONSTRUCTION
• Town Madison | Madison South • City Centre | Downtown Mixed-Use Projects with Major Multifamily Underway
• Constellation | Downtown • MidCity | West Huntsville • Clift Farm | Madison County North
23
MULTIFAMILY PIPELINE - BY SUBMARKET LOCATION
Submarket
Huntsville Pipeline Details
May 2021 Summary
TOTAL UNDERWAY Number of Properties Total Units
Future Starts TOTAL PIPELINE Number of Number of Total Properties Total Units Properties Units*
Downtown Huntsville
2
497
2
588
4
1,085
Southeast Huntsville
1
318
1
329
2
647
Southwest Huntsville
1
274
2
400
3
674
East Huntsville
2
598
2
510
4
1,108
West Huntsville
18
4,223
15
3,073
33
7,296
Madison
4
880
2
452
6
1,332
Big Cove
1
336
1
360
2
696
County
3
748
1
268
4
1,016
32
7,874
26
5,980
58
13,854
TOTALS
* Total units remaining to deliver; excludes units already delivered Source: David D. Wilson, MAI, Berkadia Real Estate Advisors, LLC
MULTIFAMILY PIPELINE - BY PROPERTY TYPE
Type
TOTAL UNDERWAY Number of Properties Total Units
Future Starts TOTAL PIPELINE Number of Number of Total Properties Total Units Properties Units*
1-Story, or Predominant
5
903
3
480
8
1,383
Garden-Style, Walk-Up
14
3,628
11
2,792
25
6,420
Mid-Rise with Elevator
10
2,655
4
1,273
14
3,928
Mixed (Multiple Types)
2
456
0
0
2
456
Age Restricted 55+
1
232
1
60
2
292
Unknown
0
0
7
1,375
7
1,375
32
7,874
26
5,980
58
13,854
TOTALS
* Total units remaining to deliver; excludes units already delivered Source: David D. Wilson, MAI, Berkadia Real Estate Advisors, LLC
24
ACTIVE CONSTRUCTION - BY SUBMARKET LOCATION
Submarket
Huntsville Pipeline Details
May 2021 Summary
Underway - In Lease-Up Number of Total Units* Properties
Underway - No Deliveries Number of Total Units Properties
TOTAL UNDERWAY Number of Properties Total Units
Downtown Huntsville
0
0
2
497
2
497
Southeast Huntsville
0
0
1
318
1
318
Southwest Huntsville
0
0
1
274
1
274
East Huntsville
0
0
2
598
2
598
West Huntsville
7
1,173
11
3,050
18
4,223
Madison
1
40
3
840
4
880
Big Cove
0
0
1
336
1
336
County
3
748
0
0
3
748
11
1,961
21
5,913
32
7,874
TOTALS
Source: David D. Wilson, MAI, Berkadia Real Estate Advisors, LLC
ACTIVE CONSTRUCTION - BY PROPERTY TYPE
Type
Underway - In Lease-Up Number of Total Units* Properties
Underway - No Deliveries Number of Total Units Properties
TOTAL UNDERWAY Number of Properties Total Units
1-Story, or Predominant
3
537
2
366
5
903
Garden-Style, Walk-Up
5
1,018
9
2,610
14
3,628
Mid-Rise with Elevator
2
356
8
2,299
10
2,655
Mixed (Multiple Types)
1
50
1
406
2
456
Age Restricted 55+
0
0
1
232
1
232
Unknown
0
0
0
0
0
0
11
1,961
21
5,913
32
7,874
TOTALS
Source: David D. Wilson, MAI, Berkadia Real Estate Advisors, LLC
25
NEW CONSTRUCTION
Perspective | New Supply
• Current Identified Pipeline is 13,854 Units in 58 Properties • In 2014, Existing Conventional Supply Totaled Approx. 20,000 Units within 88 Properties of 60+ Units – – – –
1970’s product totaled 3,165 Units 1980’s product totaled 6,200 Units 1990’s product totaled 2,120 Units Total Conventional Supply for these 3 decades was 11,485
• Population Growth Was Lower Then Source: David Wilson, MAI
26
NEW CONSTRUCTION
Complete – In Lease-Up Station at Town Madison
Developer
Tynes Development
Location
I-565 & Zierdt Rd Next to Toyota Field
1st Deliveries
March 2020
Completion
September 2020
Units
274
Type
4-Story Elevator
Avg. Unit Size
1,014 SF
Avg. Rent (Base)
$1,525
Avg. Rent/SF
$1.50/SF
Occupancy
82%
Forecast Stabilization
July 2021
Absorption
17 Units Per Month
27
NEW CONSTRUCTION
Underway – In Lease-Up The Collins
Developer
Nichol Investment
Location
Enterprise Way, west of Top Golf
1st Deliveries
Aug. 15, 2020
Completion
May 2021
Units
284 (Phase 1)
Type
4-Story Elevator and Garden
Avg. Unit Size
963 SF
Avg. Rent (Base)
$1,375/Month
Avg. Rent/SF
$1.43/SF
Occupancy
100% of Delivered Units
Absorption
28.4 Units Per Month
28
NEW CONSTRUCTION Developer
META Real Estate Partners (Atlanta)
Location
Balch Road, north of Hwy 72
1st Deliveries
Dec. 9, 2020
Completion
June 2021
Units
273
Type
3-Story Garden
Avg. Unit Size
1,073 SF
Avg. Rent
$1,350/Month
Avg. Rent/SF
$1.26/SF
Occupancy
96% of Delivered Units
Absorption
25 Units Per Month
Underway – In Lease-Up Henry House at Clift Farm
29
NEW CONSTRUCTION
Under Construction | Cottages at Old Monrovia
Developer
Capstone (Birmingham)
Location
Old Monrovia Road
1st Deliveries
May 2021
Completion
Oct. 2021
Units
275
Type
Mostly 1-Story Cottage
Avg. Rent
$1,575/Month
Avg. Rent/SF
$1.75/SF
Differentiation
• • • • •
Back / Side Yards Cathedral Ceilings Large Balconies Very Home-Like No One Above / Beside
30
NEW CONSTRUCTION
Side Note | Single-Family Fundamentals
Month
Year
Total Sales
Days on Market
Median Sale Price
Median Price Appreciation
Total Homes Listed
March
2021
764
18
$271,825
12.3%
504
1.5
March
2020
663
36
$242,000
15.8%
877
1.3
March
2019
569
55
$209,000
6.1%
1,157
2.0
March
2018
644
71
$197,000
6.7%
1,767
2.7
March
2017
576
94
$184,562
6.9%
2,277
4.0
March
2016
508
100
$172,701
n/a
2,711
5.3
Inventory to Sales Ratio
Source: Alabama Center for Real Estate (ACRE), March 2021 Residential Report
•
Severe Housing Shortage – For Past 2 Years
•
Some houses now selling sight unseen, no contingencies, numerous offers, often above asking price (bidding wars)
•
Average Days on Market – All Time Low
•
Inventory / Listings at All Time Low
•
Median Sale Price is at All-Time High
•
RESULT - Pushing People to Multifamily
31
• 12 Properties Now in Lease-Up NEW CONSTRUCTION
• Leasing Trajectory is Extremely Strong – Absorbing About as Fast as they are Delivered • Absorption Constrained by Deliveries
Conclusion | Active Construction
• New Construction Deliveries Had Been at Slow Pace – Only 632 Delivered in 2020 • The Active New Construction is Diverse – – – –
1 story is gaining steam More elevator product entering market Interest heating up for 55+ product Locational dispersion is broadening
32
• 2018 - Unit Deliveries were at 6-Year Low NEW CONSTRUCTION
• 2019 in Step with Prior Years 2015-2017 • 2020 Deliveries Very Low Near 630 Units • 2021 Deliveries Should be 2,700 Units
Conclusion / Forecast New Construction
• 2022 Deliveries Could be Over 4,000 • 2023 Deliveries – Too Much Supply Chain Uncertainty to Peg – 4,000+ Maybe
Source: David Wilson / Berkadia
33
NEW CONSTRUCTION
CONSTRUCTION PIPELINE COMPARISON as of May 2021 Under Construction
Conclusion / Forecast New Construction
Identified Future Starts
CoStar
3,748 / 15
2,780
Axiometrics
3,983 / 14
1,058 / 3
Yardi Matrix
3,782 / 16
2,232 / 11
David Wilson / Berkadia
7,874 / 32
5,980 / 26
Takeaway National sources are severely understating the supply pipeline.
34
AXIOMETRICS SUPPLY / DEMAND MODEL
NEW CONSTRUCTION
3 Year 5 Year Forecast Forecast Avg 2021 - Avg 2021 2023 2025
2019
2020
2021
2022F
2023F
2024F
2025F
693
656
2,520
2,280
1,689
463
363
1,684
1,301
1,007
728
2,093
1,199
1,772
360
150
1,270
944
Excess Demand
314
72
-427
-1,081
83
-103
-213
-414
-357
Occupancy Rate
96.8%
97.4%
97.4%
95.0%
94.2%
94.4%
93.9%
New Supply Demand
Conclusion / Forecast New Construction
Source: Axiometrics, 05.12.21
Axiometrics Forecast Demand for 2021-2023 = 5,064 Units
35
•
– Unprecedented – 1980’s saw 6,200 new conventional units in 60+ unit properties during that entire decade
NEW CONSTRUCTION
Conclusion | New Construction Forecast
7,874 Units Underway in 32 Projects
•
8 Projects Started YTD 2021
•
12 Projects in Active Lease-Up
•
2,700 Units Likely to Deliver in 2021
•
26 Future Projects Identified (5,980 Units)
•
Supply-Chain Issues & Cost Likely To Slow Future Deliveries
•
Outlook - It’s All About Timing of Job Growth – Over 30,000 New Jobs Expected in Next 3 Years
•
The 6%-7% Rent Growth Will Subside in 2021
•
Walkable product, elevator product and unique product will likely fair the best in next few years
36
TRANSACTIONS
Apartment Sales Summary – Huntsville / Madison 60+ Units - Past 12 Months TRANSACTIONS Asset Class
Units
Built
Average Unit Size Date of Sale
Occupancy
Average Quoted Rent
Rent Per SF
Price Per Unit
Price Per SF
#
Property Name
Area
1
Artisan at Twickenham
Downtown
A
246
2018
834
12/16/20
98%
$1,653
$1.98
$254,065
$305
2
Palladian at Promenade
Madison
A
110
2018
1,656
09/01/20
100%
$1,675
$1.01
$230,000
$139
3
Legacy at Jones Farm
SE Huntsville
A
421
2014/20
1,048
12/01/20
96%
$1,300
$1.24
$225,653
$215
4
Watermark at BridgeStreet
West Huntsville
A
244
2019
993
07/16/20
95%
$1,600
$1.61
$213,115
$215
5
Capital Park at 72 West
West Huntsville
A
233
2015
1,085
08/27/20
96%
$1,300
$1.20
$184,549
$170
6
Grand Reserve at Madison
Madison
A
232
2003
1,434
01/20/21
94%
$1,170
$0.82
$170,000
$119
7
Bridgewater
West Huntsville
A
334
2008
883
12/07/20
96%
$1,125
$1.27
$155,000
$175
8
Elements of Madison
Madison
B
336
1980/93
1,002
09/23/20
96%
$1,000
$1.00
$116,071
$116
9
Ascent at Jones Valley
SE Huntsville
B
431
1978
1,211
09/21/20
99%
$950
$0.78
$108,005
$89
10
Park at Bellingham
West Huntsville
C
150
1986
854
04/06/21
93%
$848
$0.99
$77,833
$91
11
Park at Summerhill
West Huntsville
C
223
1980
804
04/06/21
92%
$759
$0.94
$70,964
$88
12
Sherwood Park
West Huntsville
C
132
1965/72
967
11/30/20
98%
$700
$0.72
$62,500
$65
13
Serenity at Huntsville
SE Huntsville
C-
232
1964
943
04/19/21
70%
$654
$0.69
$57,112
$61
14
Cambridge Court
SE Huntsville
B-
64
1983
510
12/23/20
98%
$570
$1.12
$54,688
$107
15
Imperial Gardens
North Huntsville
C-
136
1965
915
10/14/20
100%
$702
$0.77
$43,750
$48
16
Treehaven Glenn
SW Huntsville
C-
70
1984
600
01/28/21
96%
$605
$1.01
$42,857
$71
17
Monarch
SW Huntsville
C-
60
1967
740
07/15/20
$550
$0.74
$31,667
$43
Sorted by Price Per Unit
38
TRANSACTIONS
Apartment Sales – Huntsville / Madison 60+ Units Past 12 Months
39
TRANSACTIONS
40
HIGHEST PRICE PER UNIT TRANSACTIONS Total Units
246
Year Built / Renovated
2018
Average Unit SF
Artisan at Twickenham Downtown Huntsville Huntsville, AL 35801
834 SF
Sale Date
12.09.2020
Sale Price
$62,500,000
PPU
$254,065
PPSF
$305
Other
Excluded the retail
Seller
Bristol Development
Buyer
Inland Real Estate (REIT)
Highest Rent Property in Huntsville ($1.80/SF) High-Density Downtown with Structured Parking
41
MOST UNIQUE PROPERTY TRANSACTIONS
Total Units Year Built Average Unit SF
421 2014/2020 1,048 SF
Sale Date
12.01.2020
Legacy at Jones Farm
Sale Price
$84,000,000
Cecil Ashburn Drive (Southeast Huntsville) Huntsville, AL 35802
PPU
$199,525
PPSF
$190
Seller:
Jones Family
Buyer:
Independence Realty Trust
Built To Hold; Decided To Sell Due to Strength of Pricing
42
SOLD DURING START OF COVID TRANSACTIONS
Total Units
224
Year Built
2019
Average Unit SF
Watermark at Bridge Street Town Centre 6854 Governors West NW Huntsville, AL 35806
1,001 SF
Sale Date
7.16.2020
Sale Price
$52,000,000
PPU
$213,115
PPSF
$215
Seller
Watermark Residential
Buyer
Twenty Lake Holdings
Marketing started Pre-COVID with price expectation In $230,000’s/unit. Offers came in April when COVID was in full swing affecting financial markets.
43
TRANSACTIONS
• Prices Resumed to Pre-COVID Levels in Summer/Fall 2020 • Investor Interest in Huntsville is Extremely Strong and Growing • Owners Taking Advantage of Market Strength
Conclusion
• Every Sale Sets a New Record • Feeding Frenzy / Seller’s Market
44
THE ALABAMA TEAM
INVESTMENT SALES
DAVID
WILSON,
Managing Director
MAI
STEVE
NUNNELLEY
MORTGAGE BANKING
CALEB
Director
FRIZZELL
TOM
Associate Director
GENETTI
Managing Director
ALABAMA SUPPORT TEAM CHRISTINA
MCDONALD
Project Manager
WILL
LETZER
Senior Financial Analyst
REID
SMITH
Financial Analyst Intern
45