San Francisco-based real estate investment firm Hamilton Zanze is expanding its holdings in the Nashville multifamily market with the acquisition of Rivertop Apartments, a newly developed 224-unit luxury apartment community located near downtown Nashville. The purchase was made in a joint venture with Cantor Fitzgerald, marking the second co-investment by the firms in the Nashville market. According to public records, the property sold for $57.1 million, with a $31.4 million acquisition loan provided by KeyBank.
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The deal also represents the third acquisition HZ has made in Nashville within the past several months. In April, the company entered the market with two purchases, the 326-unit 864 Bellevue and 150-unit Post Ridge Apartments. The acquisition placed the firm in the No. 2 position in a list of the top 5 multifamily transactions in Nashville for the first half of 2019. HZ and Cantor Fitzgerald teamed up to acquire 865 Bellevue from Aimco for $56.7 million, according to public records. HZ and two private investors purchased Post Ridge Apartments, also from Aimco, for approximately $23.5 million.
HZ has previously teamed with Cantor Fitzgerald on multifamily acquisitions, including a $60 million purchase of a 426-unit in Las Vegas and an apartment community near Baltimore purchased for $100 million, according to Yardi Matrix data.
Rivertop Apartments, which will be managed by Mission Rock Residential, was completed earlier this year by LIV Development. Located at 5800 River Road in West Nashville, the property is close to the Cumberland River and has access to walking trails and other outdoor recreation options like kayaking, canoeing and fishing. Downtown Nashville is a 20-minute drive by car. The asset has large one-, two- and three-bedroom units ranging in size from 878 square feet to 1,418 square feet. Units have high-end interior amenities and finishes including granite countertops, ceramic tile backsplashes, stainless steel appliances, wood-style flooring and private balconies. Community amenities include a resident clubhouse, resort-style swimming pool, 24-hour fitness center, bocce court, dog park, pet spa and outdoor grills and fire pits.
Long known for its music scene, Nashville is also becoming a corporate center with the announcement late last year that Amazon was locating an Operations Center of Excellence in Nashville as part of its HQ2 search. The city also is a top destination for expanding and relocating firms including Gap, LG Electronics, Bridgestone and Ernst & Young. It also has major universities including Vanderbilt University, Fisk University and Middle Tennessee State University. Nashville has more than 15 million annual visitors. Last year, visitors spent about $7 billion in the city.
Dave Nelson, HZ’s managing director of transactions, noted in a prepared statement that Rivertop Apartments offered a great opportunity to buy a new building in a great submarket. Referring to the joint venture with Cantor Fitzgerald, Nelson noted the firms were excited to continue investing in the region.
Growing Multifamily Portfolio
Since its founding in 2001, HZ has acquired more than $4 billion in multifamily assets primarily in the Western, Southwestern and Eastern United States. The company currently owns and operates 82 properties with 19,826 units across 15 states.
Last month, HZ expanded its presence in the Washington, D.C., area with the acquisition of a 238-unit community in Alexandria, Va. The firm purchased Abbotts Run from Klingbeil Capital Management for $66 million, according to Yardi Matrix. In July, HZ had also purchased a 204-unit community, The Reserve at Ballenger Creek Apartments, in Frederick, Md., for $38.5 million from Shelter Group. Mission Rock Residential also took on property management duties at both of those assets.