FCP Snaps Up Greater Nashville Affordable Asset
Walker & Dunlop originated a loan assumed by the buyer.
FCP has purchased Hickory Lake Apartments, a 322-unit affordable asset in Antioch, Tenn. The Kirkland Co. represented the seller, identified by Yardi Matrix as Elmington Capital Group.
The buyer also assumed a $17.3 million HUD loan originated by Walker & Dunlop in 2016. The note amortizes on a 40-year schedule and carries a fixed rate of 4.2 percent, the same data provider shows.
This transaction marks FCP’s sixth purchase in the Nashville, Tenn., market and the first in the area since 2022.
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Elmington had purchased the asset in 2013 for $11.5 million, with plans to spend $8.2 million in capital improvements, Nashville Post reported. Spread throughout 27 two- and three-story buildings completed in 1974, Hickory Lake Apartments comprises one- to three-bedroom floorplans ranging between 700 and 1,570 square feet. Units feature walk-in closets, wood-style flooring, as well as patios or balconies. Community amenities include two swimming pools, a sports court, a clubhouse, a gym and picnic areas.
Located at 3940 Apache Trail, the 26-acre property is less than 1 mile off Interstate 24 and some 10 miles southeast of downtown Nashville. Less than 1 mile away—past Haywood Lane’s intersection with I-24—there are a variety of dining and retail options. Roughly 2 miles away, William A. Pitts Park features slides, picnic tables and a dog park, as well as a basketball court.
Kirkland Affiliate Zac Wracher brokered the transaction on behalf of Elmington.
Navigating Nashville’s multifamily market
Although down from the transactional peak of 2022, when metro Nashville recorded $4.3 billion in asset trades, last year’s sales were still within pre-pandemic historic norms at roughly $1 billion as of November, according to a Yardi Matrix report. The average price per unit slid down 8.8 percent to $216,170, surpassing the national average of $186,300.
One of Nashville’s largest transactions of 2023 was the acquisition of One Riverwalk, a 303-unit luxury community. Passco Cos. purchased the asset for $120.7 million from Southeastern—the biggest apartment acquisition of Passco at the time. The buyer also assumed a 10-year, $64.3 million Freddie Mac loan carrying a 3.12 percent fixed rate.
