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Reserve at Research Park Apartments Sold for Reported $81 Million

Symbolic of the growth in Huntsville and its anticipated growth, a nearly 35-year-old apartment community was recently purchased for a reported $81 million.

According to a news release from The Kirkland Company, a Nashville-based brokerage firm, the Reserve at Research Park was purchased by Covenant Capital Group from B&M Management. The acquisition is the largest transaction in the area’s history, according to the brokerage firm.

Eric Hardesty and Wade Lowry brokered the sale of the 736-unit multifamily community for Kirkland. The property, formerly known as Rime Village, was built in several phases from 1987-94.

“Huntsville is receiving national attention for its rapid growth, strong economy, and recent development,” said Hardesty. “It has been Alabama’s fastest-growing city over the last 15 years and will soon be the largest city in the state.”

B&M Management of Montgomery sold the property on Explorer Boulevard off University Drive to Covenant Capital Group, a Nashville-based value-add investment manager. Its focus is on the acquisition and renovation of apartment communities in major Southeastern and mid-Atlantic markets.

B&M Management has been in Alabama for more than 25 years with a portfolio of some 8,500 units and $1 billion in market value.

This is the sixth transaction brokered by Kirkland in the Huntsville area within the last nine months, representing 1,842 units and more than $103 million.

“Employers are investing big in Huntsville,” said Lowry. “Companies like Toyota, Boeing, GE … are infusing capital into the engineering and manufacturing industries.

“The FBI is investing $1 billion at Redstone Arsenal with plans to add 4,000 jobs, and tech companies like Facebook and Google are also developing a presence there.”

Nashville-based Kirkland specializes in selling apartment communities in nine states across the Southeast.

Madison County Moving to Meet Continued Growth

An elevator shaft stands tall as crews move dirt and erect structures over nearly eight acres of land at the corner of Oakwood Avenue and North Memorial Parkway, the latest project taking shape in the city landscape that is changing daily.

 This project — on the site that was housed grocery chain stores Albertson’s and Bruno’s and most recently a Halloween haunted house – will become the Madison County service center.

 The 60,000-square foot complex will house county offices of the tax assessor, tax collector, license director, voter registrar, sales tax and probate judge.

“This is scheduled to be open first quarter of 2021,’’ Madison County Commissioner Dale Strong said. “There will be right at 400 free parking spaces for Madison County residents to do their business.’’

Strong recently visited a major project — the new FBI campus in the center of Redstone Arsenal.

Strong said he was also briefed by Robert Hamilton, the FBI Senior Executive at Redstone Arsenal. Hamilton is leading the transition of multiple FBI offices there.

 “There is right at $700 million currently under construction and 500 employees working for the FBI,’’ Strong said. “They are anticipating for 2020 there will be 1,000 people who will be hired.

“We’re going from 500 to 1,500 by the end of 2020; so that’s really exciting.’’

The FBI has announced plans to bring as many as 4,000 job to the new site over the next eight to 10 years.

Strong also said there is $350 million worth of transportation projects either under construction, in design, or recently completed in the county.

“That’s the efforts of a lot of hard work not only here locally by mayors and county commissions, but also with our legislative body in Montgomery and also with our folks in (Washington) D.C.,’’ he said. “We’re looking in the next three years to have somewhere around 14,000 new jobs to be filled with a 1.8 percent multiplier, which leads you to about 25,000 jobs.

“Then, if you look at the retail commercial businesses like McDonald’s and Walmart, we probably are looking at a somewhere around 50,000 in the next three years in employment numbers.’’

Strong, who graduated from Sparkman High School, will deliver the annual State of the County address Jan. 28.

“These are exciting times,’’ he said. “This is the best economy my generation has ever seen.’’

Redstone Gateway Continues Growth as Government Contractors Seek Prime Office Space

Two more office buildings are on the rise at Redstone Gateway as government contractors warm to the office park’s amenity-rich environment and proximity to both Redstone Arsenal and Cummings Research Park.

Rendering shows the 42,000 square-foot office building under construction at Redstone Gateway. It is expected to open by the end of the year.

Corporate Office Properties Trust, in partnership with Jim Wilson & Associates, developed the 4.6 million square-foot, mixed-use development as a Class-A office park near Gate 9 at I-565 and Redstone Road.

Redstone Gateway includes seven office buildings totaling 569,000 square feet; a full-service, 120-room TownePlace Suites by Marriott hotel; and The Shops at Redstone Gateway consisting of over 19,000 square feet of retail space, three restaurants and a conference center.

The existing office buildings are 100 percent occupied.

“The growth of availability at Redstone Gateway continues to be an asset to government contractors locating close to their customer base on Redstone Arsenal,” said COPT Chief Operating Officer Paul Adkins. “This pre-lease, along with other recent leases, highlights the value proposition of Redstone Gateway.”

Currently, there are seven buildings under construction at Redstone Gateway, expected to add another 662,000 square feet to the development.

One of those buildings is a 100,000 square foot, four-story office building along Rideout Road. There will be 113,000 square-feet of office leasing space available upon completion end of the year.

The other is a soon-to-be 42,000 square-foot single-story office building located at 6000 Redstone Gateway at the corner of Redstone Gateway and Market Street, within the Redstone Gateway development.

It, too, should be complete by the end of 2020 but will just keep pace with the demand as it is already 75 percent pre-leased to a government contractor. Approximately 13,000 square feet will be available for lease upon completion.

Rendering shows 100,000 square-foot office building with construction expected to be complete by the end of the year.

James Lomax, director of Asset Management for COPT Huntsville, said the buildings support Redstone Arsenal, clearly an economic engine for North Alabama.

“We’re excited about the rapid development at Redstone Gateway as Huntsville’s modern office park,” said Lomax. “Redstone Gateway is the most forward-thinking office development in North Alabama, creating an amenity-rich environment and walkable environment focused on employee satisfaction and efficiency.

“We’re excited to continue this phase of development and are thankful for the support from the whole community in North Alabama.”

COPT, whose Huntsville office is at Bridge Street Town Centre, specializes in developing and operating office buildings in locations that support the U.S. government and its defense contractors.

The company designs, builds and operates specialized office and data center facilities that provide technically sophisticated, mission critical environments. Maryland-based COPT often chooses locations adjacent to government agencies and prime contractors.

Northrop Grumman Selected for Army Laser Initiative

Northrop Grumman has been awarded a contract for the U.S. Army Maneuver Short Range Air Defense (M-SHORAD) directed energy prototyping initiative. The program includes integrating a directed energy weapon system on a Stryker vehicle to help protect frontline combat units.

The M-SHORAD directed energy prototyping initiative is managed by the Army Rapid Capabilities and Critical Technologies Office at Redstone Arsenal.

“Northrop Grumman is eager to leverage its portfolio of innovative, proven technologies and integration expertise to accelerate delivery of next-generation protection to our maneuver forces,” said Dan Verwiel, vice president and general manager, missile defense and protective systems, Northrop Grumman. “Our flexible, open systems approach offers an end-to-end solution for the Army’s growing and ever-changing mission requirements in today’s complex threat environment.”

Under the contract from the Rapid Capabilities and Critical Technologies Office and Huntsville-based Kord Technologies, Northrop Grumman will build and integrate advanced sensors; target acquisition and tracking; a 50-kilowatt class laser system; and battle-tested command-and-control on an Army Stryker combat vehicle. 

M-SHORAD includes laser weapon systems as a complement to kinetic capabilities in countering rockets, artillery and mortars; unmanned aircraft systems; and other aerial threats.

 

Turner Construction Renovating TMDE Lab

Turner Construction recently began renovating the Army’s TMDE Activity’s Primary Standards Lab at Redstone Arsenal. The 76,000 square-foot facility is used for primary-level calibration and repair of Test, Measurement and Diagnostic Equipment (TMDE) that the Army uses for its vehicles, weapons and equipment.

“As the agency responsible for ensuring the accuracy of the Army and its military systems, this renovation is crucial for us,” said George Condoyiannis, chief of construction for the U.S. Army Corps of Engineers, Mobile District. “The renovation includes updating laboratory spaces to keep up with state-of-the-art, high-tech army equipment that have significant calibration needs.”

The $27,223,895 renovation takes place while the building remains occupied. Completion is slated for January 2021.

“This project is an extension of an incredibly valued partnership between the U.S. Army Corps and Turner, and we are proud to play a part in the incredible work they do for our community and our country,” said Turner’s Southeast Federal Account Manager Tyce Hudson.

FBI to expand presence on Redstone Arsenal

Pictured is the FBI’s Hazardous Devices School on Redstone Arsenal

 

Huntsville’s moniker as “the Federal City of the South” was further bolstered Thursday with the announcement of a planned FBI expansion.

The FBI, which has about 300 personnel stationed at Redstone Arsenal, will add another 1,350 employees, according to the agency’s senior executive at Redstone, Robert Hamilton. The personnel will come from the Washington area.

Hamilton made the announcement at the annual Redstone Update, hosted by the Huntsville-Madison County Chamber.

“The FBI is extremely excited to announce today that we are moving forward with our first large-scale operations support building,” Hamilton said. “We expect that to be ready for occupancy in early 2021. This will move approximately 1,350 personnel and contractors from the national capital region.”
Hamilton said the personnel will include special agents and intelligence analysts.
“This is not a relocation of resources but rather a transformation of mission sets to one extremely powerful campus,” Hamilton said.

South Huntsville selected as Main Street Alabama Community

South Huntsville has been designated a Main Street Alabama community, according to a statement Friday from the nonprofit Main Street Alabama organization.

The area of Huntsville will join a statewide effort to build stronger communities through effective downtown and neighborhood commercial district revitalization.

Main Street Alabama uses a national model with a 40-year track record of success to designate the towns and neighborhoods after a rigorous application process.

According to State Coordinator Mary Helmer, Main Street Alabama will immediately provide intensive board development, goal-setting, work-planning, market study with implementable economic development strategies, targeted technical assistance, and quarterly training related to downtown development.

“When a community is ready for Main Street, as South Huntsville is, the time-tested Four Point Approach works,” Helmer said. “It brings jobs, dollars and people back to neighborhood commercial districts.”

Helmer said the interview panel was impressed by the presentation from the South Huntsville Business Association and civic leaders that demonstrated a love of their community, a vision for what they could be, and the drive to make it happen. She said South Huntsville demonstrated strong community partnerships, an impressive organizational structure with exceptional leadership, and ability to financially support a program, which made them stand out in the field of applicants.

Developed starting in the 1950s, the era of the atomic ranch house, mid-century modern architecture reigns supreme in this community and recalls its historic connection to the nearby Redstone Arsenal (and Marshall Space Flight Center) and the golden era of space exploration,” the Main Street Alabama announcement said. “As home to numerous scientists throughout its history, this community’s residents produced scientific advancements that were the envy of the world. Over the past decade, (Huntsville) has been Alabama’s growth engine, and this local commercial district has become the preferred daytime destination for 40,000 employees at the … arsenal.

“Local residents and business owners have done their research and discovered a formula to develop connectivity between its natural resources and business assets, with greenways, river access and a natural preserve. They are ready to apply our UrbanMain Street approach, and we welcome this group of innovators, otherwise known as the South Huntsville Business Association, to our program. We know you will take your community to new heights!”

Each designated community reports its success by tracking reinvestment statistics. Main Street Alabama’s Designated communities have reported 488 net new businesses; 1,932 net new job; $282,679,772 in private investment; $74,257,229 in public improvements; and 61,201 volunteer hours in their districts collectively since June 2014.

For towns interested in becoming a designated Main Street Alabama community, application workshops will be held in January. Until then, communities interested in downtown and neighborhood commercial district revitalization can participate in Main Street Alabama’s Network.

Visit mainstreetalabama.org for information.