Development of 192- Unit Apartments and 4,000 SF Retail
Parkview Financial closed a $22.5 million loan to EPT Holdings, LLC for a mixed-use redevelopment project located at 2225 3rd Avenue North in Birmingham, AL. Built in 1947, the five-story property has been shuttered since 1999 when it was vacated by the American Red Cross. It is now fully entitled to be transformed into Market Lofts on 3rd which will consist of 192 small affordable apartments averaging 438 square feet (sf), and one 4,000-sf retail unit with 60 parking spaces. With this loan, construction has now commenced with completion anticipated for December 2023.
Situated on just under one-acre of land, the 140,000-sf building was acquired by EPT Holdings in August 2020. Since then, the company has worked to complete construction drawings and entitlements and has secured tax credits and Opportunity Zone financing to raise equity capital.
The unit mix will include 95 studios, 94 one-bedroom units and three two-bedroom units featuring stainless steel appliances, wood cabinets, with ceramic tile and polished concrete floors. Building amenities will include on-site laundry, a fitness center, a lounge on the 3rd floor and a central courtyard.
“Parkview is pleased to provide financing for this mixed-use project that supports much-needed affordable housing,” said Paul Rahimian, CEO and Founder of Parkview Financial. “This asset’s location is within Birmingham’s Central Business District, an area that is experiencing significant gentrification in recent years and subsequently rising rents. Market Lofts on 3rd will target a workforce profile tenant that works in downtown Birmingham or the University of Alabama Hospital system which are both within a half-mile of this project.”
Market Lofts on 3rd is in the heart of the historic Loft District, a designated Opportunity Zone. The once
depleted area has been seeing a trend with older building renovations, residential conversions, repurposing of existing buildings, and new construction of multifamily housing downtown, and in the Southside District. A renaissance of sorts has increased the downtown residential population with the completion of several multifamily projects there and in the Southside area. The trend that started with the Thomas Jefferson Tower and the Pizitz Building is expected to continue with several other older office building rehabs including the former AT&T building, Brown Marx Tower, Commerce Tower, and the Frank Nelson Building (another Parkview loan).
The project’s general contractor is Birmingham-based Wyatt, General Contractor, LLC, and the architect of record is Birmingham-based Hendon + Huckestein Architects, PC.