Homewood Welcomes New Development Opportunities with Recent Office Building Acquisition
Homewood, AL – A shift in the local commercial real estate scene is underway as Stag Holdings, a Mobile-based real estate investment firm, has made a significant move by purchasing the Corporate Center office building on Rogers Drive for $2.53 million. The acquisition took place on August 30 and has led to exciting plans for leasing and renovations that are already lined up.
About the New Owners
Stag Holdings is no stranger to the region, having purchased several single-family homes and commercial properties in the nearby area, including downtown Fairhope. This latest acquisition was made in partnership with Pilot Capital, a Fairhope-based investment group, with managing partner Brandon Pilot playing a key role in the process. Jack Little from the Red Rock Realty Group represented Stag in this deal, while John Hardin and Alec Hersh of Shannon Waltchack acted on behalf of the sellers, ABACO Partners.
ABACO Partners is a local investment group comprising notable figures in real estate, including Bret Connor, Will Byars, and Mark Elwood. The group is known for its involvement in multifamily and mixed-use development. In fact, they have a successful history with projects like the 29 Seven Apartments and have made various real estate purchases throughout the region, showcasing their commitment to shaping local neighborhoods.
Future Plans for Corporate Center
The Corporate Center, which has housed various businesses in the past, including Nephrology Associates PC and Seiler Skin, is set for a transformation. According to Ross Wilson, the principal at Stag, the company plans to lease much of the office space to StoreEase Self Storage, which is aiming to establish a virtual call center to manage self-storage properties remotely. Pilot, who leads StoreEase’s board, is keen on this development and looks forward to its successful integration into the facility.
Renovations to the property will feature several upgrades, including improved landscaping, a repaved parking lot, and extensive updates to the HVAC system and interior layout to achieve a more modern look and feel. Wilson also mentioned that the renovations are on a fast track, with plans to have StoreEase operational by January 1.
Community Impact
The Corporate Center rests on a 29,493-square-foot lot and features a three-story office building that spans 25,385 square feet. It is conveniently located near the intersection of U.S. Highway 31 and U.S. Highway 280, making it an attractive location for new tenants. Prior tenants, including Metro Infectious Disease Consultants and Progress Bank & Trust, have already vacated, allowing the new owners to step in with fresh ideas.
Interestingly, ABACO purchased the property in 2018 for $4.2 million, which is notably higher than its recent sale price. The property is assessed to be worth $3.2 million for tax purposes for 2024. This highlights a growing trend in Homewood’s commercial real estate market, which has been relatively quiet, with only 21 office transactions recorded across all submarkets during the first half of 2021. This recent acquisition and renovation plan could signal a shift towards a more active market, particularly in the Mountain Brook/Homewood/Vestavia submarket.
Looking Ahead
The community has expressed optimism about the planned renovations and new leasing opportunities that Stag Holdings and Pilot Capital will bring to the area. As these plans unfold, Homewood residents can look forward to both an aesthetic upgrade of the Corporate Center and the introduction of new services that will contribute positively to the local economy.
