Steadfast Cos. has acquired Eastside Heights, a recently developed, 248-unit luxury community in Nashville, Tenn., from Southeast Venture for $64.2 million, according to public records. The buyer financed the purchase with a $45.5 million Fannie Mae loan from PNC Bank.
The Class A property opened its doors in mid-2018, per Yardi Matrix data, following approximately two years of construction work. Pinnacle had initially provided Southeast Venture with construction financing, with NXT Capital providing a $42.8 million refinancing package in late 2018.
The transaction is one of the five biggest single-property multifamily deals in Nashville this year, according to Yardi Matrix. The largest, CBRE Global Investors’ $102 million acquisition of a 237-unit community north of downtown, closed in June.
Located alongside Interstate 24 at 120 S. Fifth St. in Nashville’s East End, the community is near Nissan Stadium, 1 mile east of the city center. The asset has a mix of studio, one- and two-bedroom units, with floorplans between 418 and 1,166 square feet. Amenities include a pet spa, a swimming pool, structured parking and 8,000 square feet of street retail. The property was 94 percent occupied as of September, according to Yardi Matrix.
High growth, high demand
Overall, the Music City is in the midst of a development boom, driven by high in-migration and robust employment gains coupled with strong rent growth. Yardi Matrix shows 9,078 units under construction in the market, with deliveries exceeding 5,700 units during the past 12 months ending in September.
Eastside Heights’ high-end units stand out from most other multifamily assets in its surrounding area—nearly 60 percent of the submarket’s units are classified as affordable. Developers are taking note of opportunities, however, as three projects are underway within a mile of the luxury community. All told, more than 2,000 units are under construction or in planning stages in the East End.