NEW YORK, NY - PCCP, LLC announced it formed a joint venture with Montgomery, AL-based B&M Management Company to acquire The Reserve at Research Park, a 736-unit Class B multifamily property located at 6200 Rime Village Dr. in Huntsville, AL. The property was purchased in an off-market transaction.
The Reserve at Research Park was built in phases between 1986 and 1996, and recently underwent a $5 million renovation funded by the seller. Some of the many property improvements included clubhouse improvements, fitness center renovation, new exterior lighting throughout the grounds, a new play court and dog park as well as repaving.
“PCCP believes our investment in The Reserve at Research Park represents a good risk-adjusted return given the significant capital work recently completed by the seller,” said John Randall, senior vice president at PCCP. “Additionally, the area’s strong fundamentals and the high occupancy of the property provide even more stability as the market remains tight, with no significant new construction in the area.”
Randall added that PCCP has confidence that B&M, an experienced local market property owner, will manage the property at the highest standard and also plans on making some minor capital improvements to enhance its appeal and maximize renter interest.
The Reserve at Research Park is well located adjacent to Cummings Research Park, the second largest research park in the country with 10 million square feet of office space and 25,000 employees; a number of regional malls, and several transit options.
Huntsville has weathered the recession extremely well due to its strong base of technology, government contracting and advanced manufacturing labor. Additionally, Redstone Arsenal, one of the nation’s largest army bases, is undergoing a $450 million expansion as the result of the Base Realignment and Consolidation (BRAC) legislation. Huntsville’s unemployment is 7.5 percent, and it has been named as a top city for investment and for economic growth by Financial Times and Moody’s.
B&M Management is an experienced multifamily owner and operator based in Alabama that is exclusively focused on Southeastern U.S. markets. B&M has 17 years of experience and has executed $1.5 billion in deal volume since 2000. B&M’s current portfolio consists of more than 9,000 units, including more than 2,500 units in Alabama.
PCCP, LLC is a premier real estate private equity firm focused on commercial real estate debt and equity investments. PCCP has over $6 billion under management in multiple closed-end funds and joint ventures with institutional investors. With 33 investment professionals and 55 employees across four offices located in New York, San Francisco, Sacramento and Los Angeles, PCCP invests throughout the United States.