Through August, Tennessee recorded a slight decrease in the number of new coronavirus cases. Consequently, Nashville Mayor John Cooper eased some restrictions related to capacity and gatherings limitations towards the end of the month. Additionally, in an effort to help struggling residents, the metro’s council unanimously approved a $10 million rental assistance program. The market’s multifamily sector continued on a slow but steady recovery path: While transaction volumes nearly halted when the pandemic hit the U.S., things are starting to pick up, with a couple of large deals being closed in August. Here’s our selection of August Nashville must-reads:
1. DEAL – Archway Holdings sells two for $41.2 million.
A joint venture between Bond Cos. and three private investors purchased Axis and Mosaic, two communities encompassing 363 units. Bond Cos. holds the controlling interest stake in the assets. As part of the deal, the buyer assumed two 10-year Freddie Mac loans totaling $30.4 million. The 233-unit Mosaic is located at 1019 Patricia Drive, while the 130-unit Axis is located at 307 Glengarry Drive.
2. LOAN – Suburban community scores $32.1 million refi.
Nicol Investment Co., in partnership with TDK Construction, received the refinancing package for The Summit at Nashville West, a 190-unit property. CBRE Capital Markets originated a 10-year Freddie Mac note, according to Yardi Matrix data. Delivered in 2015, the eight-building community occupies 16 acres at 7201 Charlotte Pike. The unit mix provides one- to three-bedroom apartments, with sizes between 796 and 1,363 square feet.
3. PEOPLE – Walker & Dunlop strengthens investment sales department.
The company welcomed Managing Director Robbie O’Bryan, Director Brad Boston, Associate Director Laura Youngberg and Senior Analyst Cecilia O’Neal. Prior to joining the firm, the team worked at Cushman & Wakefield as part of the Multifamily Advisory Group. The four professionals were directly involved in more than 150 multifamily transactions with a total sales volume north of $1.5 billion.
4. DEAL – New community changes hands for $63.5 million.
Westplan Investors finalized the disposition of Accent Glassworks, a 282-unit property. Alpha Capital Partners purchased the asset, backed by a two-year, $50 million mortgage from Benefit Street Partners Realty Trust. Located on 8 acres at 541 Great Circle Road, Accent Glassworks consists of two four-story buildings completed earlier this year. Amenities include a saltwater pool, gym, an EV charging station and bike storage.
5. LOAN – West Nashville property lands construction loan.
XMI Holdings received a $12.8 million note for the development of the second phase of The Pearl, which will add 108 units to an existing 50-unit community, Yardi Matrix data shows. Renasant Bank provided the financing package which is set to mature in 2027. The same lender funded the construction of the project’s first phase through a $5.3 million note in 2017. The development site is located at 1708 Pearl St., across the street from the existing community.