JV Acquires Nashville Community for $81M
Alliance Residential sold the 238-unit Broadstone Gulch.
Security Properties and Pacific Life Insurance Co. have acquired Broadstone Gulch, a newly-constructed, 14-story, 238-unit Class A multifamily property in Nashville, Tenn., for approximately $80.8 million, from Alliance Residential Co. It is the seventh asset Security now owns in the Nashville marketplace.
Security Properties Residential, a Security Properties affiliate, will manage the property. The transaction was brokered by Telly Fathaly and Kris Mikkelsen of Walker & Dunlop.
The building offers studio, one- and two-bedroom floorplans. Broadstone Gulch has high-quality interior finishes including luxury appliance packages featuring side-by-side refrigerators, hidden-control dishwashers, wine coolers and full-size washers and dryers in every unit, as well as marbled quartz countertops and keyless entries. The community amenities include a fitness center, rooftop sky lounge, indoor/outdoor pool club, demonstration kitchen, package access system, smart office space, pet spa and Google Fiber internet access.
Located on the southwest corner of Division Street and Eighth Avenue S., the apartment building is less than a 10-minute walk to Music City Center (Nashville’s convention center) and the heart of The Gulch neighborhood at 12th Avenue and Pine Street.
The Gulch was the first LEED Neighborhood Development in the South because of its walkability, public transportation and connectivity. The mixed-use neighborhood located between Downtown, Midtown, SoBro and Music Row is seeing development and redevelopment that is popular with residents and tourists. The Broadstone Gulch location is expected to become even more walkable as more development occurs in the area, particularly numerous Class A office projects that are under construction in the area, including those for high-profile employers like Amazon, AllianceBernstein and Asurion.
Tad Johnson, director at Security Properties, said in a prepared statement the property’s proximity to the office development was a prime reason for adding Broadstone Gulch to its Nashville portfolio. Other assets in Nashville include Duet Apartments, Hamptons at Woodland Pointe and Note 16 Apartments.
In November, Seattle-based Security Properties and joint venture partner STARS REI acquired Augusta Apartments in Seattle, a 210-unit apartment community, for $98.1 million from Vulcan Real Estate. The seven-story property at 4041 Roosevelt Way in the University District also had 3,470 square feet of ground-floor retail and is located blocks away from a new light rail station expected to be completed in 2021.
A month earlier, Security acquired Lofts at 7100, a 379-unit, Class A community in Las Vegas from Pacific Coast Capital Partners for $80 million. That deal gave Security its fifth asset in the Las Vegas market.