Northmarq’s Debt + Equity team arranges $19.588M refinance of Market Lofts on Third in Birmingham, AL

BIRMINGHAM, Ala. — Northmarq’s Nashville Debt + Equity team led by Jesse Lemos and William Rhett successfully arranged the $19.588 million refinancing of Market Lofts on Third, a 192-unit multifamily housing community located at 2225 3rd Ave N in Birmingham, Alabama.

Northmarq arranged financing on behalf of the borrower, EPT Holdings LLC, through the firm’s in-house Fannie Mae DUS platform. The transaction was structured on a 10-year term with 5 years of interest only.

“This project was initially a historic office building in downtown Birmingham. Our borrowers used the historic designation to create a new naturally affordable multifamily project that helped the downtown market with new housing,” Lemos said. “Fannie Mae was the best fit due to the natural affordability.”

Market Lofts on Third opened in 1923 as Birmingham’s Municipal Market, and over the years it has served as an automobile equipment company, a bowling alley, office space and more. Renovated in 2023, today it is a mixed-use redevelopment that offers 140,000 square feet of living space as well as 8,000 square feet of commercial use.

"Market Lofts on Third exemplifies the effective use of Opportunity Zones and both State and Federal Historic Tax Credits, all while delivering much-needed affordable housing in one of Birmingham’s most vibrant corridors,” Rhett said. “Fannie Mae stepped up to support this complex transaction, reinforcing their commitment to mission-driven lending."

Floorplans include studio, one- and two-bedroom units with white cabinetry, stainless steel appliances, quartz countertops, historic concrete flooring, larges windows and electric thermostats.

Community amenities include a rooftop deck with downtown views, courtyard gathering space and fire pit, fitness center, app-managed laundry center, off-street parking across the street, residential lounge with Wi-Fi, coffee bar and billiards, pet park with shampoo station, furnished options available through CORT Furnishing, 24-hour emergency maintenance, and an optional wash, dry and fold service.

It boasts a location near the Alabama Theatre, Legacy Arena, Protective Stadium, The Market at Pepperplace and the Coca-Cola Amphitheater. It has ample food and nightlife options nearby, and it is in close proximity to Interstates 20 and 65 as well as U.S. Highway 280.