Investment Overview

Marcus & Millichap is pleased to offer for sale The Palms at Center Point located at 107 25th Court NW in Center Point, Alabama. 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. 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.