Nashville’s multifamily is staying hot, continually proving that the multifamily market’s success in Music City is not just a temporary spike – it’s here to stay.
The Nashville Business Journal, quoting a Colliers International market snapshot, reported a 0.9 percent increase in the occupancy rate, bringing it to 95.8 percent for 2013’s second quarter, while rents went up 2.1 percent to an average of 91 cents per square foot. The market’s performance is more impressive when the 766 new apartment units that came to the market are taken into consideration.
This should come as no surprise as more and more of the multifamily industry’s movers and shakers move into the Nashville area. For example, Landmark Apartment Trust of America (LATA), has recently bought into the Greater Nashville Area, by purchasing Mission Brentwood Apartments. According to the Nashville Business Journal, LATA paid $32.3 million or $85,000 per unit for the 380-apartment community located at 1000 Enclave Circle, in South Nashville. According to a press release, the low-rise apartment community was part of a three-property acquisition, worth $98.9 million. Now renamed Landmark at Wynton Pointe, the asset was picked up along with the 364-unit Landmark at Preston Wood, located in Richardson, TX and the 590-unit Landmark at Gleneagles, located in Dallas, TX. Combined, the properties comprise 1,334 units and boast a 94 percent occupancy rate. Landmark at Wynton Pointe boasts amenities such as multiple swimming pools, heated spa, fully equipped fitness center, picnic and grill area, 1,932 square feet of tennis courts, resident business center, Wi-Fi café and car care center.
“We continue to invest in multifamily properties located in Southern U.S. markets that we believe will benefit from our proven repositioning program and sophisticated operating platform,” declared LATA Chief Executive Officer Stanley J. Olander, adding “We are also pleased to be entering Tennessee where we’ve identified strong market fundamentals and an opportunity to grow our portfolio.”
According to real estate website PropertyShark, the 33.15-acre asset was previously owned by Mission Brentwood, Dst, an Oakton, VA-based entity that purchased the community in October 2006. The same source estimated the property’s 2012 market value at $18,676,000.
Image courtesy of Google Maps.