HPI Real Estate Fund V LLC, a real estate private equity investment fund sponsored by Hamilton Point Investments, has purchased Apartments at the Venue, a Class A, a 618-unit multifamily property in Valley, Alabama for $51 million, or $82,524 per unit.
“We buy post-2000 construction apartments in growing secondary markets for well below replacement cost,” said HPI co-founder and managing principal Matt Sharp. “It’s tough to get hurt buying high-quality 2008 construction in this market at $82,500 per door.”
Sharp noted that replacement cost is 50 percent more than Hamilton Point paid for the property. The company plans to increase cash flow and value by completing modest unit interior and common area upgrades.
Built in 2008, Apartments at the Venue is comprised of one-, two-, and three- bedroom apartments, averaging 1,068 square feet. Community amenities include three swimming pools, a fitness center, two clubhouses with business centers, detached parking garages, and two car wash centers.
The property is located in Alabama’s primary auto logistics corridor, less than 20 minutes from Kia’s manufacturing plant (3,000 jobs) and the coming Sentury Tire plant (1,000 jobs by 2019). The property is adjacent to a new 410-acre Valley Industrial Park and less than an hour and a half from Atlanta, Georgia.
Hamilton Point Investments is a real estate investment company that owns and manages multifamily apartment properties. The company invests thorough a series of real estate private equity investment funds that seek to acquire apartment communities in growing markets at below replacement cost pricing. To date, HPI has completed over 60 real estate investments totaling 12,000 units and $1.1 billion of value. Hamilton Point is based in Old Lyme, Connecticut, and its wholly-owned asset management office, Hamilton Point Property Management, is located in Atlanta, Georgia.