Summerchase at Riverchase, is a 240-unit, low density, garden style multifamily asset located in Hoover, Alabama, a suburb of Birmingham. This Class B+ property was completed in 1989 and offers a tremendous value-add investment opportunity.
At a purchase price of $39.25 million, the property will cost $163,542 per unit which represents a 4.67% cap rate based on a normalized trailing three-month NOI. The total capitalization for this acquisition is estimated at $44.25 million, which includes the purchase price, projected capital improvement budget, fees and closing costs. PIA Residential expects to finance this amount through an agency loan of $25.5 million and approximately $18.75 million in equity.