33 Holdings LLC is excited to announce the acquisition of two multifamily properties, located in Birmingham, Alabama, for a purchase price of $3M. Acquired by its subsidiary, 33H Fund II LLC – It’s Distressed & Foreclosure Residential Fund, the portfolio purchase represents the first acquisition by 33 Holdings LLC (33H) outside of Atlanta, GA as it expands its investment footprint into other South East US States.
The properties in the portfolio, include 128 Units of Garden Style Apartments, located within five miles of each other and three miles from downtown Birmingham and consists of one, two and three-bedroom garden-style apartment homes. The Birmingham area continues to remain one of the South’s fastest-growing areas and base to education & healthcare sectors in the region. The property is geographically well positioned and close to major interstates, retailers, and employers like University of Alabama, Birmingham (UAB) & Princeton Baptist Medical Center.
Both properties were approximately 30% occupied at purchase and were foreclosed last year by the lender. 33H started discussions on this acquisition in December 2019 with the Seller/Lender and signed the contract in January 2020 slated for March 2020 closing after extensive due diligence. Due to the Global Pandemic hitting the US in March 2020, lenders backed out of the deal causing the parties to re-evaluate, re-negotiate and re-underwrite the deal. After extensive underwriting to Post-COVID19 world, 33H decided to move forward on the deal given they were acquiring a pre-covid19 foreclosed asset at post covid-19 pricing.
A $2.5 million revitalization will begin immediately, and the properties will undergo significant renovations to the exterior common areas and interior units. In addition, all communities will be renamed and rebranded with 33H’s to be announced Affordable Housing & Living brand.
“We could not be more excited about expanding our footprint in the state of Alabama. Huntsville and Birmingham are two thriving cities experiencing significant job growth and development that we plan to expand into in 2020 and beyond. This two-property acquisition in Birmingham, AL is a strong addition to our portfolio and represents a wonderful opportunity to serve and provide affordable housing to over 100+ families in the area,” said Sanjay Raghavaraju, Founder & CEO of 33 Holdings LLC.
“Our long-term success in these communities is directly tied to the resident-oriented focus of our property management company and we are excited to provide our residents with new upgraded apartment interiors and amenities that will make the communities a more inviting place to call home” said Kristina Reynolds, VP of Operations at 33 Realty Management LLC, Leasing.& Management Subsidiary of 33 Holdings LLC.
About 33 Holdings LLC
33 Holdings LLC specializes in real estate investment, Acquisition, development, construction and asset management across the South East United States with a concentration on primary and secondary markets. Sanjay Raghavaraju founded 33 Holdings LLC on the premise that investment in real estate should be driven by sound market fundamentals, a flexible time horizon and strong alignment of interest between investors and managers. 33 Holdings has a strong track record of driving investment results. 33 Holdings differentiates itself by providing hands-on real estate investment management, creative deal structuring, and transparent communication with partners.
For more visit http://www.33holdings.com