ACRE Closes $55M Loan for Nashville Purchase

The latest financing from this debt fund was provided to HHHunt Corp. for a luxury acquisition.

Abberly Foundry. Image courtesy of ACRE

Global private equity firm ACRE provided a $54.5 million loan to HHHunt Corp. to purchase a newly built, 231-unit luxury multifamily property in Nashville, Tenn., that has been rebranded as Abberly Foundry.

HHHunt acquired the property, previously known as Alta Foundry, at 640 21st Ave. N. in Nashville’s Medical District from Wood Partners for $86.6 million in a deal brokered by Newmark. The five-story property is nearly 80 percent occupied. The asset, which has a mix of studios, one- and two-bedroom floorplans, is located about 2 miles from downtown Nashville.

The three-year loan has options for two single-year extensions. It was issued through ACRE’s debt fund, ACRE Credit I, which has raised $509 million of equity and has closed and committed to providing more than $2 billion in loans across more than 50 transactions. Roger Edwards of JLL served as broker for the deal.

The fund supports the acquisition, lease-up, redevelopment and recapitalization of multifamily assets in growing secondary markets across the United States such as Nashville; Miami and Orlando, Fla.; Denver; Dallas; Durham, N.C.; and Charleston, S.C.

In June, ACRE finalized a $58.5 million bridge loan through ACRE Credit I with Passive Investing toward the purchase of Braxton Music City, a 236-unit luxury multifamily community in Nashville. The three-year agreement also includes options for two single-year extensions. It was the second loan issued to Passive Investing since ACRE Credit I’s launch in August 2020. The first was a $15.3 million loan for a property in North Carolina.

Sam Browne, vice president of ACRE, said in a prepared statement Nashville has proven to be a resilient market that continues to perform well in terms of occupancy levels and new product delivery.

The Nashville multifamily market has maintained a solid performance this year, with total sales volume surpassing $2.2 billion through July, according to a recent Yardi Matrix report. The metro’s construction pipeline also remained robust—20,070 units were underway as of this summer.

More ACRE deals

In October, ACRE closed a $52.7 million loan from ACRE Credit I to a joint venture between Graycliff Capital Partners and Buligo Capital Partners for the purchase of Johnstown Plaza, a newly built, 252-unit, Class A multifamily property in Johnstown, Colo. The joint venture had previously received a $29.5 million loan from ACRE Credit I in December 2021 for acquisition of Retreat at Weatherville in Weatherville, N.C.

During the summer, StepStone Group, a global private markets investment solutions and advisory firm, invested $300 million as part of a of a multi-pronged capital commitment to ACRE in a new strategic partnership that includes a portfolio recapitalization and plans to invest in multifamily properties across the U.S. The commitment from StepStone, a leading pension fund allocator and one of the world’s largest institutional consultancies, was broad-based and underpinned by recapitalization of a 1,500-unit multifamily portfolio from an earlier ACRE fund. It also included a joint venture focused on multifamily development opportunities across the risk spectrum, such as value-add acquisitions, lease-up and ground-up development across the Sun Belt, Midwest and Texas, and a primary fund investment.

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