Nashville Multifamily Wrap-Up – May 2020
Suburban community gets $28 million Fannie Mae loan. Micro-unit project gets the go-ahead. Read our May selection of Nashville must-knows.
Although the city’s tourism remains at a halt, parts of Nashville are now beginning to slowly reopen amidst the COVID-19 pandemic. While the road ahead remains uncertain, the metro’s multifamily activity has begun to pick up. In May, several significant financing transactions closed, with borrowers taking advantage of historically low interest rates, particularly for assets in suburban zones. Here’s our May list of Nashville must-reads:
1. FINANCING – Antioch community scores $28 million refi.
Tri City Rentals took the financing for Brighton Valley Apartments, a 302-unit multifamily asset at 500 Brooksboro Terrace, some 10 miles southeast of downtown Nashville. The Fannie Mae loan retires a previous mortgage of $17.6 million taken in 2014. Newmark Knight Frank assisted the borrower with the loan.
2. FINANCING – Walker & Dunlop arranges $30 million suburban apartment loan.
Michelson Org. used the mortgage to refinance the 238-unit Preston Run Apartments in Goodlettsville. The community is located at 333 Northcreek Blvd. and has a mix of one- to three-bedroom units. The Class A asset last traded in 2007, when the borrower acquired it for $24.1 million.
3. FINANCING – Suburban development picks up extra financing.
According to Yardi Matrix, The Cascades, a 339-unit project located in Antioch at 3300 Murfreesboro Pike, received an additional $7 million from Truist Bank, following $33 million originated in late 2017. Work on the community started in March last year, and the property’s 11 three-story buildings are slated for delivery in mid-2021.
4. DEVELOPMENT – Local authorities approve plans for mixed-use development.
Rutledge Flats will have 174 micro-units and 1,030 square feet of retail space, according to Nashville Post. Eagle Rock Ventures and The Mathews Co. will develop the eight-story building, which will be located at 622-626 Third Ave. S., southeast of SoBro in the Rutledge Hill neighborhood.
5. FINANCING – Capital One originates Freddie Mac loan for 248-unit community.
White Eagle Property Group received the $29.7 million refinancing package for The Trails, a property located on 19 acres at 100 Trails Circle. The 10-year mortgage retires two prior loans of $41 million. Completed in 1985, the community has one- and two-bedroom apartments ranging from 521 to 1,036 square feet.