Engel Realty Identifies a Unique Opportunity in the Birmingham Loft District
Engel recognized the inherent value potential in the property that could be attained.
In 2016 Engel Realty purchased the Whooten Lofts a 14-unit loft building in downtown Birmingham. Engel was able to acquire the property through an off-market transaction. Engel recognized the inherent value potential in the property that could be attained through a value-add program. That program would include updating the units with new high-end appliances, counter tops, cabinetry, lighting, fixtures, and flooring. In a previous life the building was used for document storage but had been converted into loft apartments in the 1990’s. Located on 1st Ave North in downtown Birmingham within the bustling and highly desirable Loft District the newly renamed Whitaker Lofts presented an opportunity to upgrade the units and push the in-place rent rates. The loft market in downtown Birmingham is currently experiencing tremendous demand with very limited inventory available to prospects. Thanks in part to the high demand and the implantation of the value-add program Engel was able to see rent rate increases of nearly $600 per month. The uniqueness of the property and the high local demand Engel was able to sell the property via an off-market transaction to a local condo converter. The sale occurred less than 18 months after purchasing netting a 64% return.