Carter Multifamily Buys Alabama Multifamily Portfolio for $121 Million
Carter Multifamily, an affiliate of Carter Funds and sponsor of private placement offerings, has purchased a four-property, 876-unit multifamily portfolio located in the Mobile, Alabama market
Carter Multifamily, an affiliate of Carter Funds and sponsor of private placement offerings, has purchased a four-property, 876-unit multifamily portfolio located in the Mobile, Alabama market for $121 million. The acquisition expands the firms assets under management to 2,897 units in Alabama.
The four properties include Arbor Gates (184 units), The Gates at Jubilee (248 units), Lenox Gates (228 units), and Regency Gates (216 units).
The properties were built between 1992 to 1999 with overall occupancies ranging from 92 percent to 96 percent at the time acquisition. The portfolio is located in Mobile’s Baldwin County, where average annual rent growth from 2012 to 2021 was 3.7 percent, which is higher than the national annual rate of 3.1 percent. Quarterly occupancy rates in the county have remained stable at around 95 percent since 2011, the company said.
According to Ray Hutchinson, chief investment officer, “Each of these properties are in high-growth southern markets where we have previously acquired properties and successfully executed our value-add strategy. We’re excited to continue to grow our footprint in a market supported by excellent growth fundamentals, favorable renter demographics, and limited new supply.”
He added, “With its attractive tax environment and transportation infrastructure, we believe Baldwin County will continue to attract new residents with its low cost of living and high quality of life. This will continue to fuel demand growth for high-quality, affordable multifamily housing, making these properties unique value-add opportunities for Carter Multifamily.”
The company plans to execute a value-add strategy to improve operational improvements, including implementing property management best practices, upgrades to community amenities, interior unit renovations, and exterior plant improvements.
Carter Multifamily focuses on acquiring multifamily assets with value-add opportunities.
