The beginning of an economic development boom in Huntsville, Ala., has attracted investment by the Penn Capital Group, based in Phoenixville, Pa. Penn recently acquired the North Ridge and Continental apartment communities, which total 468 units. The adjacent communities are about 4 miles west from downtown Huntsville and near the University of Alabama-Huntsville. In addition, they are 2 miles from Mid-City Huntsville, a 100-acre mixed-use development that is under construction and slated to include retail, restaurants, hospitality, and residential.
The properties are comprised of one-, two-, and three-bedroom apartment homes that will be rebranded as Madison Grove Townhomes and The Ave. Penn plans on plowing $7 million into the properties to update the units by renovating kitchens and bathrooms and adding new wood vinyl floors, new appliances, and washer/dryers in most homes while keeping rents affordable.
“Our team has been excited for construction to get underway. We believe the improvements planned here are going to make a big impact to the local community and improve the quality of life for our residents,” said Edward Rogan, a founding partner at Penn Capital.
Penn Capital Group will be investing $7 million in renovations in two properties in Huntsville, Ala.
The apartment communities were purchased from an anonymous owner for an undisclosed price. Penn secured a bridge loan for the acquisition and redevelopment from iBorrow. “We love Huntsville, and our team is very excited to get this project started,” said Percy Nikora, a founding partner at Penn Capital. “We are closing on the acquisition of two really well-located assets, in one of the fastest growing metro areas in the South, and we are getting in at a low basis purchase price, even at this stage of the market cycle.”
Job growth is fueling the area’s rise. “Huntsville is experiencing a late-cycle job creation boom, unparalleled in the U.S.,” said Rogan. Recent multimillion dollar investments in Huntsville have been made by Toyota/Mazda, Mercedes-Benz, Google, Facebook, Boeing, Blue Origin, GE Aviation, NASA, and the FBI adding more that 6,000 new jobs.