Palms at Center Point 107 25th Ct NW 56 Unit Apartment Building $5,000,000 ($89,286/Unit) 11.35% Cap Rate Center Point, AL 35215

The Gulf States office of Marcus & Millichap is pleased to offer for sale The Palms at Center Point, 129 unit a multifamily community located at 107 25th Court NW in Center Point, Alabama.  The Palms, currently lender-owned, is being offered to the market at a going in per unit basis 25-30% below the immediate sales comps set, allowing the next investor to acquire economies of scale at well below market pricing with robust repositioning upside. The property is located in the heart of Center Point, Alabama, a residential community in Jefferson County, the state’s most populous county. Situated just 15 miles northeast of downtown Birmingham, Center Point benefits from its proximity to one of the Southeast’s most diverse economies. Birmingham serves as a regional employment hub with strong sectors in healthcare, finance, higher education, and advanced manufacturing.
Over the past five years, The Palms at Center Point has received a capital infusion across both exteriors and select interiors, focused largely around asset preservation items and general curb appeal. The next investor has opportunity to achieve above market returns by injecting strategic capital in bringing all units online as well as by implementing a professional management system, measures which would yield $125-150/month rental premiums based on the competitive rental set.  The Palms at Center Point is strategically located within a short 15 minute commute to the most dynamic major employers in Birmingham, ensuring a steady demand for quality housing in the area. This strategic location makes the asset highly attractive for residents and investors alike, as it provides convenient access to key job centers and amenities in Birmingham.   Downtown Birmingham is experiencing notable economic momentum, characterized by a surge in development projects, infrastructure improvements, and job creation. Recent developments include the Edgehill at Southtown project, a mixed-use initiative featuring retail spaces, a biotech center, and a hotel. Infrastructure enhancements, such as the completion of the I-20/59 Bridge and the development of CityWalk BHM, a 31-acre linear park beneath the I-59-20 interstates, have also enhanced the city's aesthetic and functional appeal. The park includes a quarter-mile walking trail, sports fields, and stages for outdoor concerts, fostering community engagement and attracting visitors.
The multi-family submarket in Center Point is characterized by affordability and a lack of new supply. No new multi-family construction has occurred in over a decade, and currently, there are no units under development. This shortage of new supply ensures that the existing rental options remain the primary choice for housing. The submarket's vacancy rate stands at 16.2 percent, slightly above its long-term average of 13.4 percent. While this rate is elevated, it reflects localized absorption challenges rather than systemic weaknesses. The combination of limited future supply and the area’s affordability positions the submarket for stabilization. Rents in Center Point have increased by 3.5 percent year-over-year, in contrast to flat rent growth across the broader metro area. This divergence indicates that, despite the higher vacancy rate, the submarket's affordability supports pricing momentum. There is a tangible opportunity to raise rents while still remaining well below metro-wide averages. For this property, these market dynamics present a clear opportunity, bolstered by the submarket's renter base driven by affordability, the absence of new competitive supply, and a demonstrated trajectory of rental growth.