SPANISH FORT, AL—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, AL, for $42.9 million. The property was acquired using Fannie Mae financing, according to Gary Goodman, senior vice president acquisitions of Passco Companies.
“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% 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-based multifamily brokerage team, facilitated the sale.
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.
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.
“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.
Passco Companies, LLC is a nationally recognized market leader in the acquisition, development, and management of multi-family and commercial properties throughout the US.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
