Post date: Jun 28, 2013 2:15:12 PM
MOBILE, Alabama – Citing Airbus-fueled economic promise, a Massachusetts-based investment firm has purchased five apartment home properties from Mobile’s Delaney family for an estimated $98 million.
The 2,013 multi-family unit deal – the largest for Colony Hills Capital LLC since its 2011 founding and arguably the most lucrative real estate transaction in Mobile’s history – included Cabana Apartments on Michael Boulevard, The Pathways on Pathway Place, Sandpiper Apartments on Government Boulevard, Windsor Place on Airport Boulevard and Yester Oaks on Yester Oaks Drive. Scott Mehlman, Colony’s vice president of acquisitions, said the properties’ central locations and overall quality “give them an immediate advantage within their market.” “Given where we see the economy going in Mobile, especially in light of Airbus’ major plans there, we feel we have the right product at the right place at the right time,” Mehlman said.
Toulouse, France-based Airbus broke ground April 8 on a $600 million final assembly line at Mobile's Brookley Aeroplex. The facility -- the planemaker's first such operation on U.S. soil -- will be dedicated solely to assembly of A320 family aircraft; deliver its first Mobile-assembled plane in 2015; and is expected to employ 1,000 directly when it reaches full production of 40 to 50 aircraft annually in 2018.
Richard A. Weavil, president of Mobile-based Weavil Co. LLC who represented the sellers in the transaction, said to illustrate the deal’s heft Bel Air Mall sold for about $88 million when it last changed hands. Weavil worked alongside Birmingham-based Hinton Properties as lead brokers with assistance from both Hendricks & Partners and Delaney Land and Realty.
David Kaufman, Colony’s president, said Mobile “fits perfectly” with his firm’s philosophy of investing in often-overlooked areas despite both location and infrastructure advantages that “will allow them to have greater than average employment growth.” “The state of Alabama – and Mobile in particular – are business friendly and offer a great quality of life, which have allowed them to be extremely successful at recruiting international businesses to locate on their soil. The list is world-class, and we are very excited to be part of Mobile’s next major growth phase. Our ability to find off-market transactions in locations like Mobile should serve our investors well,” Kaufman said. In turn, Colony Hills' current holdings are almost exclusively located in the state of Alabama.
With the closing of the Delaney deal, the Wilbraham, Mass.-based firm now owns a total of nearly 3,000 units, representing investments totaling more than $150 million, including the January 2012 purchase of Birmingham’s 468-unit Riverchase Landing for $28 million. The company also owns Wynthrope Forest Apartments in Riverdale, Ga.
By Kelli Dugan | kdugan@al.com on June 27, 2013 at 9:54 AM, updated June 27, 2013 at 10:03 AM