Harbert Realty Service’s Casey Howard represented the Sellers and John Tally represented the Buyers in the $5,000,000 ($222/sf) investment portfolio sale of 2121 1st Avenue North & 2127 1st Avenue North in Downtown Birmingham, Alabama. Tax Break Recovery, LLC, acquired the properties from Buyers, 2121 First Avenue, LLC, and 2127 First Avenue, LLC, both entities owned by private equity firm, Sixty West. 2121 1st Avenue North is a 13,100sf office/retail building with surface parking lot that is also home to Black Architects, My Advisors Financial and Oncentive. 2127 1st Avenue North is a 9,400sf single-tenant office building with surface parking lot occupied by Oncentive.
The property is located along the busy 1st Avenue North corridor of Downtown Birmingham. The area has seen a recent surge in activity over the last several years with projects including the new Kelly Hotel (96-room Hilton Tapestry), Shipt Headquarters, Rotary Trail, Morris Avenue Retail/Restaurant District, Mercantile on Morris mixed-use retail/residential development, Pizitz Food Hall and McWane Science Center. The properties are also in close proximity with easy access to Red Mountain Expressway, US Highway 280 and Interstate 65.
Casey Howard stated, “our team and our Sellers are thrilled with the outcome of this portfolio sale and the price we were able to achieve at a $222/sf valuation. This type of valuation speaks to the confidence in our Downtown Birmingham market. Even with the slight uptick in interest rates, there continues to be strong activity throughout our market for the right kind of real estate, in the right locations, with the right kind of economics/returns.”
“I’m very happy for the buyer in this transaction,” stated John Tally. “After leasing 2127 1st Ave North at the beginning of the year, this was the obvious next move to accommodate their rapid growth.”