CapStack Increases Nashville Footprint

The firm teamed up with MACC Venture Partners to acquire three garden apartment communities totaling nearly 500 units across the city.

A joint venture between CapStack Partners and MACC Venture Partners has acquired a multifamily portfolio from Hyde Capital Group. Encompassing 475 apartment units, the assets are located in the Nashville, Tenn., area. The sale marks the company’s first value-add acquisition following its newly secured mandate to invest and reposition assets in the Southeast. The Vistas, Fawnwood Apartments and Archwood Meadows had been acquired by the previous owner between 2013 and 2015 in separate transactions totaling $23.1 million, according to Yardi Matrix.

Well-Located Apartment Communities

Located at 5319 Nolensville Pike in Nashville, The Vistas is a 205-unit garden community 10 miles southeast of the city’s downtown. Situated next to State Route 11 and served by public transportation, the nine-building development features a mix of one- and two-bedroom apartments. Property amenities include a swimming pool, a playground and two laundry facilities. Residents also have access to 293 on-site parking spaces.

Fawnwood Apartments, a 158-unit property with a range of one- and two-bedroom units across 11 two-story buildings, is located at 321 Walton Lane in Madison, a northeastern suburb of Nashville. Situated next to U.S. Highway 31 East, the community benefits from numerous retail options that are a short drive away. The list of amenities includes a resident clubhouse, a pool and more than two parking spaces per apartment.

Also located in Madison, at 110 Archwood Place, Archwood Meadows encompasses 11 buildings with a total of 112 units ranging in size from 730 to 1,408 square feet. Sitting next to State Route 45, the property has easy access to Nashville via Interstate 65, less than three miles to the west. The garden community features amenities such as an outdoor swimming pool, laundry facilities and a playground in addition to 275 parking spaces for residents.

“This acquisition directly aligns with our investment parameters,” said David Blatt, CEO of CapStack, in a prepared statement. “Each property is exceptionally well-located, has a stable operating history and offers a significant value-add opportunity. We intend to reposition the portfolio into high-quality workforce housing to capitalize on the strong demand for this type of product in Nashville.”

Images courtesy of Yardi Matrix