Arch Companies has acquired a three-property portfolio of garden-style multifamily apartment properties in the Birmingham, Alabama metro area. This is Arch’s third acquisition in Alabama and adds to the company’s national expansion efforts in the southeast market. The three properties comprise 514 units, bringing the firm’s portfolio to 5,000 units across the U.S. Financing for the acquisition was provided by Stone Beach Capital. Josh Jacobs of Marcus and Millichap brokered the sale.
Located in the Center Point submarket, the portfolio includes Village Square Landings, Center Point Landings and Clay Landings Apartments. The acquisition closes out the firm’s rapid yearly growth in Alabama following a 486-unit acquisition in Birmingham and a 649-unit acquisition in Tuscaloosa.
“The Birmingham metro area is experiencing meaningful development from strong employment and population growth,” said Jeffrey Simpson, Managing Partner, Arch Companies. “The strategic location of the properties just minutes from major industrial and manufacturing businesses place them in one of the most sought-after locations for potential tenants.”
The properties are well-situated in the Center Point area, sitting in close proximity to an industrial corridor, which is home to various major employers and runs along Alabama State Route 79, as well as is anchored by numerous national brands, restaurants, retail stores and downtown Birmingham.
The buildings include a mix of one- to three-bedroom apartments. To improve resident experience, Arch will be implementing value-add capital improvements through their vertically integrated Arch Builders division and a hands-on asset management and operations strategy.
“This portfolio is a significant reinvestment in Arch’s broader Southeastern multifamily strategy,” said Jared Chassen, Partner, Arch Companies. “The ongoing urban migration to the Sun Belt is creating exciting opportunities for the industry and we continue to be bullish on the Gulf region.”
“Arch has a successful track record of bringing value to multifamily properties throughout the region and the country,” said Martin Rauch, Principal, Stone Beach Capital. “We look forward to seeing the value they will deliver for this portfolio.”
“Arch continues to build on its reputation for delivering quality value-add strategies on garden-style multifamily properties in the Southeast,” said Jacobs. “We are excited to see the ongoing growth of their assets under management in the region and are pleased to continue our collaboration on strategic deals.”
About Stone Beach Capital
Stone Beach Capital is a full-service commercial real estate platform focused on credit opportunities in the US and Europe. The company has three investment verticals, direct asset backed lending, whole loan acquisitions and special situations. Stone Beach Capital differentiates itself through its institutional operating processes, speed and certainty of execution and ability to assess complex real estate situations.
About Marcus & Millichap (NYSE: MMI)
With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 8,954 transactions in 2020 with a value of approximately $43 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.
About Arch Companies
Arch Companies is a vertically integrated real estate owner, operator, and developer with an active investment portfolio of more than 3.4 million square feet across the United States. Founded in 2017 by Jeffrey Simpson and Jared Chassen, Arch specializes in real estate investment, development, and management with a concentration on primary and secondary markets. The company has three investment verticals, value add multi-family, ground up development and rescue capital. Arch differentiates itself by providing hands-on real estate investment management, creative deal structuring, and transparent communication with partners. Arch’s vertically integrated platform allows for complete control and oversight of the business plan throughout the life cycle of the investment.