MOBILE, AL. – May 29, 2015 – (RealEstateRama) — Passco Companies, LLC has acquired The Arlington at Eastern Shore, a 300-unit, Class-A multifamily community located in the Spanish Fort suburb of Mobile, Alabama. The property was acquired using Fannie Mae financing, according to Gary Goodman, Senior Vice President Acquisitions of Passco Companies LLC.
“Located in the fastest-growing county in the state of Alabama, The Arlington at Eastern Shore has maintained an average occupancy rate of 96.5 percent over the past two years,” says Goodman. “With increasing population and job growth anticipated in the region, this property is poised for ongoing strong performance, and we are pleased to be able to provide such a concrete asset to our investors.”
Rock Apartment Advisors, a Birmingham, Alabama based multifamily brokerage team, facilitated the sale of the Arlington at Eastern Shore.
Bo Flurry, Managing Director of Rock Apartment Advisors notes, “Arlington at Eastern Shore presented an opportunity to acquire a top performing asset in one of the state’s strongest multifamily submarkets. The property is considered a premier asset in the market, as it offers the best combination of location and quality in the Mobile MSA.”
The Arlington at Eastern Shore is located on the eastern shore of Mobile Bay in upscale Baldwin County, just 13 miles from downtown Mobile and 30 miles north of the Gulf of Mexico.
Passco’s Gary Goodman explains, “The coastal location of the greater Mobile metro area has always made this region prosperous. Based on this location, as well as the strength of Baldwin County, which continues to demonstrate a growing job market, top rated schools, and strong population growth, the region is extremely attractive for property investment.”
According to Goodman, the factor that most strongly drew Passco to this investment is the area’s population growth, which is anticipated to increase by another 3.7% over the next five years. This growth can be directly tied to the area’s recent industrial boom, which has created a tremendous number of employment opportunities in the region. In fact, Mobile was named the third largest “industrial boomtown” in the U.S. by Forbes magazine in 2014.
Goodman notes that one of the primary job creators is The Port of Mobile, which was recently selected as the location for a new $54 million automotive state shipping terminal. The Port of Mobile has also dramatically grown in recent years, and has invested $65 million to $70 million annually to improve its facilities in anticipation of increased traffic due to the widened Panama Ship Canal.
In addition, Goodman notes that Airbus recently selected Mobile as home to its only aircraft assembly site in the Western hemisphere, making this region its sole industrial hub. This expansion will add an estimated 1,000 jobs, and will help to attract additional companies and suppliers to area.
Commercial vessels manufacturer Austal USA is also expanding in the Mobile area, and recently increased its workforce to 4,000 jobs locally to accommodate its multi-billion dollar, ten ship military contract.
“This tremendous job growth in the region will continue to fuel renter demand for years to come,” Goodman says. “Further, there are no new multifamily projects currently being developed in the area, which will result in stellar occupancy rates and the potential for strong future yields for our investors.”
Goodman notes that many of the families who are moving into the Mobile area for employment are attracted to the Spanish Fort submarket based on its highly regarded public schools.
“The City of Spanish Fort is located within the prestigious Baldwin County Public School System, and this City boasts the top three schools in the entire Mobile metropolitan area – each of which is situated within three miles of The Arlington at Eastern Shore,” he added.
Further supporting the property’s overall strength and profitability is its close proximity to Eastern Shore Centre, a 1.1 million square-foot lifestyle and retail center, according to Goodman. Recognized as the premier shopping center in the area, the center features a Dillard’s, Belk, Barnes & Noble, and Bed Bath & Beyond, as well as Premiere Cinemas, Eastern Shore Lanes Bowling Alley and Laser Tag, and a Publix as a grocery anchor.
Arlington at Eastern Shore is located at 10558 Eastern Shore Blvd in the City of Spanish Fort, Alabama. The 300-unit community was built in 2009, and features a “big house” community design with high-end property features and individual unit entrances. Each multi-unit building appears as a luxury single family home with an attached garage, giving the property a neighborhood-feel, rather than a multifamily community.
The community features one-, two- and three-bedroom floorplans, with units that include high-end features such as crown molding, in-unit washer and dryers, walk-in closets, nine-foot ceilings, and attached garages. The multifamily property also features a variety of high-end amenities such as an indoor basketball court, fully stocked fishing pond, oversized pool and sundeck with poolside canopies, resident lounge, car care center and fitness center.
Goodman notes that Passco plans to make some value-add improvements to the property, including installing wood-like flooring in each of the 132 ground-floor units, as well as adding a dog park and new exterior paint.
About Passco Companies, LLC
Passco Companies, LLC is a nationally recognized market leader in the acquisition, development, and management of multi-family and commercial properties throughout the U.S.
For more than 15 years, Passco has delivered sound investment strategies to clients, partners and investors, enabling them to create, maintain, and add value to their portfolios through a full set of real estate services, including investment advice, asset management, and brokerage, as well as property development, construction, and management services.
Headquartered in Irvine, California, Passco holds a diverse cross section of prime retail, multi-family, office and industrial properties nationwide, and has acquired, managed, and/or developed over $3 billion in property since its inception. The company is currently involved with 60 properties in 18 states, and is actively growing its investment portfolio in primary and secondary markets throughout the nation. More information is available at www.passco.com.
About Rock Apartment Advisors
Rock Apartment Advisors is a Birmingham-based commercial real estate firm with an exclusive focus on apartment brokerage services throughout the Southeast. Rock has developed a reputation for providing quality service to both institutional clients and private investors. Since its start in 2003, Rock has brokered over $1.9 billion in apartment transactions. For more information on current multi-family opportunities or to see a list of recent sales, visit their website at www.rockadvisors.com or contact Bo Flurry, Managing Director, at 205.397.2200.
Corynne Randel / Jenn Quader
Brower, Miller & Cole
CRandel (at) browermillercole (dot) com