Multi-Family•Low-Rise/Garden•For Sale

100464. 14 Home SFR Birmingham AL

100464. 14 Home SFR Birmingham AL, Birmingham, Alabama 35222

Sale Price $4,175,000
Gross Bldg 29,201 SqFt
Land Area 4.02 Acres
Project Size 14
Market Birmingham MSA
Sub-Market Birmingham
This 14 home portfolio is located in various neighborhoods across the recently hot market of Birmingham, Alabama. The majority of homes consist of popular 3 and 4 bedroom floor plans, this portfolio is optimized for top rents in the area. Rents are currently averaging $2,144 per month, the investor has the opportunity to increase these rents at tenant turnover by 5% to the current market rates. The portfolio is well managed and holding steady 100% occupied with fully vetted tenants on 12-36 month leases, creating instant cash flow. High market rents allow many of these properties to achieve above a 7% cap rate, which won’t last long in this hot market. Single family rental homes are the single most common housing type in Birmingham AL real estate, accounting for about 60% of the city’s housing units. Demand is increasingly high, creating the opportunity to acquire an investment that will have no problem staying leased. With the median rent per month in Birmingham at $900, these homes are high performing. The Birmingham-Hoover metro, located in the north central region of Alabama, has a population of about 1.2 million residents. It is the 49th most populated metropolitan area in the US and represents 23% of Alabama’s total population. There is a large percentage of people who are young, single, educated and upwardly-mobile career starters in Birmingham; 25.71% of adults in Birmingham have at least a bachelor’s degree, higher than the US average. The metro is expected to add about 20,000 jobs through 2022. In the area, there are a lot of people who work in office and administrative support (13.99%), sales jobs (11.16%), and management occupations (7.46%). Birmingham’s economy is heavily concentrated in healthcare, technology, education and financial services. Recently, there has been a shift to manufacturing and white-collar jobs thanks to automobile manufacturing and distribution centers belonging to international automobile manufacturers such as Mercedes-Benz, Honda and Hyundai. The healthcare industry is still one of the largest economy players, in which the University of Alabama at Birmingham is the leader in biotechnology and medical research. The largest employers in the MSA is the University of Alabama Birmingham with 23,000 employees, UAB Health System, Brookwood Baptist Health, St. Vincent Health System, Grandview Medical Center, Children's Hospitals of Alabama and Birmingham VA Medical Center. Innovation Depot is leading in growing Birmingham’s tech economy, where the organization provides an incubator for startups. One of the largest technology companies that has come out of Birmingham, Shipt, was acquired by Target in 2017 with plans of hiring over 880 people, further improving the metro’s economic renewal. The financial sector is growing as well, whereas major banks, insurance companies, and other financial institutions are homed in the area. In 2018, the Bureau of Labor Statistics reports the average finance services employment in the area to be 41,900. The largest employers in the financial sector are Regions Bank, BBVA Compass, Servis1st Bank, Protective Life Insurance Company, and Blue Cross and Blue Shield of Alabama. In 2018, Birmingham was added to the top “10 Cities Where Gig Workers Can Flourish” by US News & World Report, then ranked “11th Best City” for Jobs in 2017 by Glassdoor, “Birmingham Named One of the 25 Best Towns of 2017” by Outside Magazine, and in 2015 the city was ranked at one of the top ten “Happiest Cities to Work In” by Forbes.
  • Single-family rental homes account for 60% of the city's housing
  • All homes recently remodeled & in quality condition
  • High current average rents, well beyond Birmingham’s median rents
  • Contain majority of 3-4 bedroom homes, a popular plan among renters
  • Strong projected cap rates with rents increased to market rates
  • 100% occupied with professionally vetted tenants
  • Significant job growth with metro area expecting to add 20,000 jobs through 2022
  • “11th Best City” for Jobs in 2017 by Glassdoor
  • Birmingham ranked in 2015 at one of the top ten “Happiest Cities to Work In” by Forbes
12/27/2019 9:13:49 PM 1/20/2020 7:10:24 PM
Jeff Cline
Managing Director | Principal
SVN | SFRhub Advisors
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