$40M Condo Project Pushing Out of Ground

Based in The Hague, Euro American has been working the Birmingham market at least a decade. Today's portfolio contains 950 multifamily units and a construction pipeline for another 500, including a plan for a $100-million, 220-unit development in the Capri's Highland Park neighborhood. "The Capri reflects our commitment to the Birmingham market where we have two other major projects about to be announced," says Michael E. Spiker, Euro American's managing director.

Jerald King, Euro American's Tampa-based director of investments and acquisitions, tells GlobeSt.com that the Capri has reached the 50% mark in sales, with deals hitting an average of $400 per sf. "We're getting the highest end sales ever recorded there," he adds. And, he says the development clearly is on track to be sold out by the May 2007 delivery. The Capri is replacing an apartment complex that was bought and the 2.75-acre site scraped nearly two years ago as Euro American made its way through the planning process for the new development, according to King.

The Capri has been designed by Atlanta-based Rule Joy Trammell + Rubio LLC--eight floors of two- and three-bedroom condos from 1,200 sf to 3,700 sf and two levels of parking. BL Harbert Construction LLC of Birmingham is the general contractor.

Euro American had jumpstarted construction with a $28-million loan from Red Mountain Bank in Birmingham and the Bankers Bank in Atlanta. Red Mountain's loan arranger was Art Freeman and Bankers had Buddy Sharpel as its transaction lead. King, who led Euro American's financing drive, says the construction loan is the norm: 18-month term at interest-only rates.

"A lot of big companies don't look at markets like Birmingham," King says. "But, there's a lot of opportunity." Euro American's $750-million portfolio of mostly multifamily properties includes Orlando, Dallas/Fort Worth and the Northeast.