Benson O'Connor, with White-Spunner & Associates Inc. in Mobile, says the sellers--Regency Gates LLC and Arbor Gates LLC--had some of the same members in the single-asset partnerships. "The partners had held these properties since they were developed, about 15 years," O'Connor tells GlobeSt.com. "It appeared to be a good time for them to sell."
Situated at 5700 Grelot Rd., Regency Gates has one-, two- and three-bedroom units from 820 sf to 1,390 sf. Monthly rents are $65 to $940.
Arbor Gates, located at 901 Gayfer Ave. in Fairhope, also has one-, two- and three-bedroom units. Units range from 850 sf to 1,300 sf, with rents going from $655 to $925 per month.
According to O'Connor, Blacksher White-Spunner, the brokerage house's president, marketed both complexes to a few select buyers rather than listing them. O'Connor says Montgomery-based B&M Management offered a competitive price. Also, the buyer and sellers had closed two previous sales--the 254-unit Ashley Gates Apartments at 912 Van Ave. in Daphne and 228-unit Lennox Gates at 1500 Hillcrest Rd. in Mobile. Charles Christmas of Christmas Properties in Montgomery represented the buy side.
O'Connor points out that all four class B complexes are in the same MSA and all are in very good shape. "If B&M makes upgrades, it won't be a whole lot more than general upgrades," he adds.
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