New York CRE firms enter Bham market with big multifamily buy

Northway Equities along with their affiliates acquired a 269-unit multifamily portfolio consisting of Crestview and Fox Valley apartments in the Homewood area for $69,185 per unit,according to Jefferson County public records.

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The selling entities belong to ROCO Real Estate in Bloomfield Hills, Michigan, which had acquired the properties in separate deals for a total of $15.1 million in 2013 and 2014,according to public records.

"A strategic partnership was the best way for us to break into the Southeast market," said Nathan Amoyelle, managing partner at Northway Equities. "With our expertise in turning units in the Northeast, we see this as a true win-win for all parties, specifically for our tenants."

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Northway Equities said they have a pinpoint plan to stabilize the properties as a value-add acquisition for their investors and the communities, setting aside $2 million in escrow for capital improvements to upgrade the properties and units. It's a large acquisition that CRE professionals say bodes well for the local multifamily market, which has traditionally experienced high occupancy rates and strong rent collections.

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The 120-unit Fox Valley and 150-unit Crestview apartment communities are located near downtown and Homewood. "Many of the properties along Valley Avenue have undergone a successful value-add campaign, and Fox Valley is well positioned for the same," said Craig Hey, managing director in Cushman & Wakefield's multifamily advisory group, who was not involved in the deal.