Ala Holdings SFR Portfolio AD
205 South Capitol Parkway
Montgomery, AL 36107
Highlights
- Priced Well Below Replacement Cost at $66 Per Square Foot
- Value Add Opportunity via Rent Raise and Renovation Program
- Centrally Located Portfolio For Easier Management
- Attractive Assumable Debt | 4.53%
- Cap Rate: 7.98% on Current | Pro Forma 10.2%
- Cash on Cash: 8.92% on Current | Pro Forma 12.64%
- Total Return: 10.4% on Current | Pro Forma 14.1%
- Rental Income Loss to Lease | 14.57%
- Strategic Ability to Sell Individually Into Historically Strong Single Family Market
- Notable Economic Drivers | Hyundai Plant, Maxwell-Gunter AF Base,
- State Capitol of Alabama, Alabama State University, Amazon, Alfa Insurance
Description
Introducing the Ala Holdings SFR Residential Portfolio, an exceptional opportunity to acquire a strategically positioned and easily manageable collection of residential properties in the thriving Sun Belt city of Montgomery, Alabama. This portfolio offers well below market assumable debt of 4.53% with a maturity date of December 2029.
Under current ownership, the portfolio is expertly managed through a local family partnership structure, ensuring a hands-on approach and attentive management. Over the years, this asset has been meticulously maintained and is operating in a sound and efficient manner. There is an opportunity to engage in a renovation strategy to lift the properties and generate substantial increases in rental income. The management team employs a combination of in-house maintenance staff and reliable third-party vendors to meet all service requirements of the portfolio. They also provide unique tenant incentives and maintenance programs that contribute to tenant retention and have the potential to add further value under new ownership.
Strategically situated in Montgomery, a city experiencing remarkable growth and embracing a new vision for economic prosperity and enhanced quality of life, the Montgomery Residential Portfolio is ideally positioned. The city has implemented significant revitalization efforts to attract top talent and corporations alike. Residents and businesses are drawn to the State of Alabama's business-friendly climate with its low tax rates and favorable Sun Belt weather. Moreover, Montgomery benefits from its central location between major cities such as Atlanta, Birmingham, and Mobile, as well as its close proximity to the pristine beaches of the Gulf Coast. The presence of prominent manufacturers and distribution centers further strengthens the local economy and contributes to a high standard of living for its residents.
This offering presents an exceptional investment opportunity for groups seeking exposure to the Sun Belt region's traditionally favorable business environment, coupled with overall better weather conditions. The area is witnessing a steady influx of capital, increasing the demand for affordable housing options. The Montgomery Residential Portfolio provides the advantage of economies of scale that out-of-area investors seek, including the option to hire a full management staff. Consequently, this portfolio serves as an attractive acquisition target for institutional and private equity investors, both locally and nationally, who recognize the potential for long-term returns in this dynamic market.
Montgomery, Alabama, centrally located in the Sun Belt region, offers an advantageous location for businesses and residents alike. Positioned 153 miles from Atlanta, Georgia International Airport via Interstate 85, it provides convenient access to major transportation hubs. The city is also within a short drive of Birmingham, located 92 miles to the north, and the port city of Mobile, situated 169 miles away. Moreover, Montgomery's proximity to renowned Gulf Coast beaches, such as Pensacola, Navarre, and Destin, allows for easy weekend trips to the scenic shores of the Gulf of Mexico.
As the capital of Alabama, Montgomery boasts a vibrant economic environment that has garnered multiple Chamber of Commerce awards for excellence. The city's "Imagine a Greater Montgomery" initiative showcases its commitment to shaping a new vision for the future. Montgomery's economic development strategy focuses on nurturing regional talent, diversifying the economy, transforming the city's image, and fostering a diverse and empowered community.
The area is driven by several key economic factors, including Hyundai manufacturing, Maxwell & Gunter Air Force Base, major Amazon distribution centers, the Alabama State Capitol, Alfa Insurance, Kinpak, H2 Pharma, Dollar General transportation and logistics, Dow Chemical, and Conner Industries, among others. Additionally, the Port of Mobile, the ninth largest port in the nation, contributes significantly to the state's economic growth. The port facilitates the export of various goods, including containers, coal, laminate, flooring, iron, steel, frozen poultry, chemicals, soybeans, and lumber products.
Montgomery's unwavering focus is on attracting large corporations, capitalizing on its diverse and highly skilled workforce. The city is dedicated to expanding air services, improving passenger traffic, and enhancing overall travel experience. Major initiatives supporting this vision are already underway, fortified by robust economic policies that include low taxes and attractive incentives, ultimately yielding greater economic benefits for businesses and residents alike.
