J. Eric Higgins, president of Colonial Commercial Realty Inc., also in Montgomery, says the four-year-old complex at 13675 Coursey Blvd. was brought to market in late fall 2007 because the business unit that had developed and owned it, Pinnacle Homes at Baton Rouge Ltd., was shutting down. "The marketing period wasn't very long," Higgins tells GlobeSt.com. "It took a long time to close because it involved a HUD assumption." And, he adds, the Gulf of Mexico hurricanes also slowed down the transfer.
In making its first buy in the area, Northview Realty took over a $25.5-million loan with a 7.1% fixed-rate interest. "The HUD office we were working with was in New Orleans," he explains. "It's hard to get any kind of insurance on anything when hurricanes are in the Gulf. That delayed us about another 60 days."
Higgins says the 30-day marketing period brought two offers, with Northview Realty offering an ability to close. "They were financially stable and had the equity," he says.
The 97%-occupied complex has one-, two- and three-bedroom units. Unit measure 635 sf to 1,267 sf. Rents are $815 to $1,190 per month. The new buyer will take over management from Colonial Properties Trust in Birmingham, AL.
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