Southeast Multifamily Sector Shows Resilience with $22.3M Dothan, AL Deal

DOTHAN, AL – November 18, 2025 – A recent $22.3 million financing arrangement facilitated by Greystone for the sale of Magnolia Preserve, a 173-unit multifamily community in Dothan, Alabama, signals continued strength and investor confidence in the Southeast’s multifamily real estate market. The deal, brokered by Cushman & Wakefield, highlights the region’s ongoing appeal for real estate investment, even amidst national economic headwinds.

Deal Details and Regional Context

The financing took the form of a Fannie Mae Delegated Underwriting and Servicing (DUS) loan, showcasing access to capital for acquisitions in secondary markets like Dothan. Magnolia Preserve, built in 2014, offers garden-style apartments with updated amenities and caters to a growing demand for quality rental housing in the area. “Dothan presents a unique opportunity within the Southeast,” explained one industry source. “The presence of major medical centers creates a stable base of residents, particularly healthcare professionals, who are drawn to the area’s affordability and quality of life.”

The Dothan market benefits from a lower cost of living compared to the national average, approximately 14% less, and a relatively affordable rental market, with average rents significantly below the national average. This combination makes the city attractive to both residents and investors. While recent months have seen some fluctuation, current average rents range from $922 to $1,300. “The Southeast, and specifically markets like Dothan, are proving to be more resilient than some other areas of the country,” said another observer. “Job growth and population increases continue to drive demand for rental housing.”

Financing Trends and Market Resilience

The utilization of a Fannie Mae DUS loan is a key indicator of market conditions. These loans are generally reserved for stabilized assets with strong credit profiles. “The availability of DUS financing demonstrates lenders’ confidence in the long-term performance of multifamily properties in the Southeast,” a financial expert noted. “The terms are competitive, and the non-recourse nature of the loans provides comfort to investors.” The current rate environment, while elevated, hasn’t deterred investment. While interest rates on comparable loans range from approximately 5.33% to 7.61%, the demand remains strong.

Greystone’s active role as a Fannie Mae DUS lender, ranking among the top firms nationally, underscores its commitment to the multifamily sector. The company originated $12 billion in loans in 2024. Cushman & Wakefield, with a longstanding partnership with Greystone, leveraged its expertise to successfully broker the sale. The firm’s strategic joint venture, established in 2021, streamlines the transaction process for clients. “The collaboration between Greystone and Cushman & Wakefield is a testament to the value of strategic partnerships in the commercial real estate industry,” said one market participant. “Each firm brings unique strengths to the table, resulting in a seamless experience for both buyers and sellers.”

Impact on Affordable Housing and Future Outlook

While positioned as a Class A property, the presence of a modern, well-maintained multifamily community like Magnolia Preserve contributes to the overall housing stock in Dothan. Access to quality rental housing is crucial, particularly as homeownership rates remain out of reach for many. The community’s features, including a pool and fitness center, cater to a lifestyle that’s appealing to a broad range of residents. “It’s not just about providing shelter; it’s about creating a community where people want to live,” one observer stated. The deal also exemplifies the broader trend of investors seeking opportunities in smaller, secondary markets, where competition may be less intense and yields potentially higher.

The Southeast’s multifamily sector is expected to remain strong in the near term, driven by continued population growth, job creation, and a favorable climate. While economic uncertainties persist, the region’s fundamentals are solid. “We anticipate continued investment in the Southeast, particularly in markets like Dothan that offer a compelling combination of affordability, quality of life, and strong economic drivers,” a regional real estate analyst predicted. “The demand for rental housing is likely to remain robust, and well-positioned properties like Magnolia Preserve are poised to perform well in the years to come.”