STRATEGICALLY POSITIONED TO BENEFIT FROM EAST BIRMINGHAM’S GROWTH CORRIDOR
IRONDALE, ALABAMA | BIRMINGHAM MSA
200 UNITS | BUILT IN 1988 | RENOVATED IN 2017
ABOUT THE TEAM
At Novu Residential Group, we’re forging a new path in residential real estate development. Our purpose is to create experiences and spaces that improve the total wellbeing of both our residents and our partnering communities. Novu’s team of proven placemakers and value creators has more than 50 years of combined experience in sourcing, developing, and managing communities.
TRACK RECORD
Team Experience
Current Projects
*Includes prior history with previous development firm
TEAM
Patrick Jackson CEO & Founder
Bo Flurry Chief Investment Officer
Tony Sorace Director of Development Texas and South Region
Joseph Sedita Director of Development Florida and Atlantic Region
Brian Robbins General Counsel
Rhusabh Mehta Controller Kaitlyn James Investor Relations
PROJECT TEAM
NOVU RESIDENTIAL GROUP
GENERAL PARTNER AND OPERATOR
Novu’s team of proven placemakers and value creators has more than 50 years of combined experience in sourcing, developing, and managing communities. Novu aims to provide a residential living experience like no other through each project they take on, which is why they ensure that their communities adhere to the highest standard, the Novu Standard, through continued on-site management and hospitality.
SANDHURST APARTMENT MANAGEMENT
GENERAL PARTNER AND MANAGEMENT COMPANY
Sandhurst Apartment Management is a forward-thinking, time tested group that provides a wholly integrated package of property management services, including on-site asset management, construction supervision and due diligence. Our success is rooted in our thoroughly vetted, valueadd property investments so we can provide high-quality rental apartments in good school zones with attentive, hands-on property management.
A UNIQUE OPPORTUNITY IN A THRIVING MARKET
ASSET OVERVIEW
• 200-unit garden-style community in Irondale, Alabama (Birmingham MSA)
• Built in 1988, fully renovated in 2017 with upgraded interiors and enhanced amenities
• New clubhouse, pool, fitness center, patios/balconies, landscaping, windows, roofs, and siding
ACCRETIVE ASSUMABLE LOAN
• Assumable $15.4M Agency mortgage at 4.18% fixed interest, maturing November 1, 2031
• Supplemental financing option of $1.85M with a 7.50% interest rate (blended rate: 4.56%)
• Offers over 100 basis point savings compared to conventional Agency financing
MARKET TIMING
• Purchased at an attractive cap rate and basis during a favorable cycle
• Solid investment with rent growth potential, limited new supply in the submarket, growth corridor in East Birmingham
VILLAGE AT GRANTS MILL APARTMENT HOMES
Situated less than one-half mile from I-20 access, providing residents direct and quick access to all of Birmingham’s attractive amenities and demand drivers
PROPERTY SIZE
200 UNITS | 110,598 SF 1988 YOC | RENOVATED IN 2017
LOCATION
5320 BEACON DRIVE
IRONDALE, AL 35210
HOMEWOOD SITE
COMPELLING INVESTMENT OPPORTUNITY
DEEP DISCOUNT TO REPLACEMENT COST
• Purchase price: $115K/unit; “all-in” basis: ~$125K/unit
• Replacement cost for similar new garden-style properties: $215K–$235K/unit
• Projected exit price is well below cost to develop
FAVORABLE RETURNS
• In-place Cap Rate: 6.7% (6.3% post-closing tax/ insurance adjusted)
• Levered IRR: Mid/high teens
• Levered equity multiple: over a 5-6 year hold period, with taxsheltered distributions
FULLY RENOVATED ASSET
• Recent comprehensive renovations to unit interiors, clubhouse, and amenities provide new class A feel at a much lower basis
• High-quality condition minimizes immediate capital expenditures
PRIME LOCATION
• Minutes from major highways (I-20, I-459) and Cahaba Crossing, a retail hub anchored by Publix
• Zoned for highly-rated Shades Valley High School (A- rating on Niche.com)
• Convenient access to retail and dining, ensuring tenant retention
STRONG DEMOGRAPHICS
• Located in an area with desirable, high-income demographics
• Adjacent to Alabama’s most affluent suburb of Mountain Brook
• The average household income within two miles of the property is $104,124 and the average home value is $392,607
EXPERIENCED MANAGEMENT
• Our Partner, Sandhurst Management, has managed assets in Birmingham since 2012 and has a strong local presence
• Successful track record: Exited two Birmingham assets with >2.0x equity multiple and >20% IRR
SUBMARKET FUNDAMENTALS
• Projected 3.4% average rent growth (2025-2028)
• Limited new supply: Only one 270-unit project expected in two years
• Future developments likely delayed by current market conditions
ATTRACTIVE FINANCING
• Deal structure involved assumption of non -recourse Fannie Mae loan with fixed rate of 4.18%
• Well under current market rates which are in the low 6s
UPDATED UNIT INTERIORS
• Granite Countertops
• Stainless Steel Appliances
• In-Unit Washer/Dryer
• Custom Wood Cabinetry
• Designer Tile Backsplash*
• Hardwood Style Flooring*
*In Select Units
CURRENT EXTERIOR & AMENITY UPGRADES
Village at Grants Mill residents enjoy access to the new clubhouse, pool, resident lounge, outdoor fire pit, and fitness center building
INVESTOR RETURN HIGHLIGHTS
SAMPLE INVESTMENT BASED ON SIX YEAR HOLD PERIOD
SPONSOR FEES:
Acquisition Fee: 1.00% — Charged for sourcing opportunities, arranging financing, facilitating transactions, and developing the investment and operational strategy
Asset Management Fee: 50 bps — Covers execution of the business plan, overseeing daily property operations, managing the property team, and analyzing KPIs to maximize performance
RENT COMPARABLES
1 BEDROOM COMPARABLES
DEPENDING ON FLOORPLAN
2 BEDROOM COMPARABLES
THE VUE AT CRESTWOOD
RETREAT AT MOUNTAIN BROOK
GRAND HIGHLANDS
MAA LIBERTY PARK
UNION AT COOPER HILL
TAPESTRY PARK
CROWNE AT OVERTON VILLAGE
SALES COMPARABLES
STONE RIDGE APARTMENTS
TAPESTRY PARK
(Walmart,
(Burlington,
13,894 2024 Population
10,265 Number of Jobs
LARGEST EMPLOYERS Birmingham MSA
$342,290
Birmingham is the primary driver of economic growth in AL, representing
LOCATION HIGHLIGHTS
The property is close to 1-20/459 providing quick access to the downtown CBD, new
The Grants Mill Road corridor offers promising future growth; a new publix was recently completed as well as a road expansion to improve traffic flow to I-459
1 2 3
Review Offering Materials
Follow up with Novu Residential to discuss this opportunity in more detail
CURRENT EQUITY SNAPSHOT
MILLION SPONSOR EQUITY
Close Offering Target: February 2025
