Thompson Thrift Sells Alabama Asset to Capital Square Multifamily Real Estate News

FarmHaus in Madison, Ala. Image courtesy of Thompson Thrift

capital square acquired FarmHaus, a recently completed 324-unit Class A multi-family community in the Madison, Alabama suburb of Huntsville, from Thompson Thrift. The selling price has not been disclosed.

Whitson Huffman, co-chief executive of Capital Square, based in Glen Allen, Va., said in prepared remarks that FarmHaus is a great addition to the company’s growing portfolio of luxury multi-family communities throughout the Southeast. Huffman noted that Huntsville is one of the most desirable markets for residential investment due to its rapidly growing economy and demand for quality rental options like those provided by FarmHaus.

Residential Watermark, a wholly-owned subsidiary of Thompson Thrift, began construction of the FarmHaus Community in February 2020 on a 22.5-acre site outside the fast-growing town of Huntsville. Located at 1260 Balch Road in Madison County, the community is 92% leased.

The property is made up of three-story garden-style apartment buildings with one-, two-, and three-bedroom layouts averaging 973 square feet. Units feature open concept floor plans with hardwood style floors, quartz countertops, stainless steel appliances including French door refrigerator, kitchen island with pendant lights, walk-in closets walk-in closet and a private patio or balcony. Community facilities include a clubhouse, fitness center, business center, coffee bar and games lounge, resort-style swimming pool, fire pit and community grilling station, fenced party for dogs and a pet spa.

Josh Purvis, Managing Partner of Residential Thompson Thrift, said in a prepared statement that FarmHaus has been a successful development for the company in the growing Huntsville market. He attributed the success to the quality of the construction, finishes, amenities and on-site team which generated considerable interest from residents and potential buyers.

Craig Hey and Andrew Brown with Cushman & Wakefield Multi-Family Advisory Group brokered the sale for Thompson Thrift, a full-service real estate company with offices in Indianapolis, Denver, Houston, Phoenix and Terre Haute, Ind.

Huntsville is one of the nation’s top growth markets and has attracted more than $5 billion in capital investment since 2018, including major companies in aerospace, defense, medical, education and telecommunications. Rents have increased in the area by an average of 8% since 2019, and the city ranks first in GDP and population growth.

capital square specializes in tax-efficient real estate investments, including Delaware Statutory Trusts for 1031 Exchanges and Qualified Opportunity Zone Funds. As a developer, Capital Square has eight projects totaling approximately 2,000 apartments with a total development cost of over $600 million.

Several weeks ago, Capital Square acquired Lakeside on Riverwatch, a 200-unit community in Augusta, Georgia, as CS1031 Lakeside on Riverwatch Apartments, DST for an undisclosed price from McDowell Properties. It was company 62n/a acquisition of a community for the DST/1031 program. Also in September, Capital Square acquired two multi-family communities in Asheville, North Carolina, with a total of 305 units. The purchase was made on behalf of a private placement office, CS1031 Asheville NC Apartment Portfolio, DST. River Mill Lofts has 253 units and Skyloft Apartments has 52 units.

Recent provisions

Thompson Thrift has made several divestments in recent months. Last week, Thompson Thrift Residential sold The Element, a 276-unit community in Kansas City, Mo., which was completed last year, to Timberland Partners. Also last month, the company sold Watermark in Grand Central Park, a 288-unit Class A multifamily community in Conroe, Texas, a suburb of Houston, to CEG Multifamily. Built in 2021, the property is located in The Woodlands in the planned community of Grand Central Park.

In August, Thompson Thrift sold The Wyatt, a 216-unit multifamily community in Gilbert, Ariz., a suburb of Phoenix, to a private California buyer. Earlier this summer, the company sold The Ranch at Sienna, a 312-unit community in the Houston suburb of Missouri City, Texas, to Laye Capital Investments and The Retreat, a 324-unit community in Corpus Christi, Texas, to a private real estate investment firm.

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