Security Properties JV Buys Downtown Nashville Apartments
- Apr 27, 2016
Nashville, Tenn.—Seattle-based Security Properties has acquired two multifamily assets in Nashville’s urban core for a combined $53.7 million.
Located adjacent to Centennial Park and just Northwest of Vanderbilt Stadium in the West End neighborhood, Opus 29 features 139 units and sold for $34.4 million. With 86 Class A units, Note 16 sold for $19.3 million. The property is situated in Music Row’s area just East of Vanderbilt University’s Peabody Esplanade and Vanderbilt University Medical Center, and two blocks North of Belmont University.
“Nashville is an 18 hour city with strong appeal to millennials and a diverse economy dominated by Education and Healthcare, two industries that have historically been recession resistant. As we get later in the current real estate cycle, we strive to deploy equity in increasingly strong locations. These deals, which were acquired on an off-market basis, have been capitalized using 10 year, fixed rate debt at 60 percent LTV,” Barrett Sigmund, senior director at Security Properties in Seattle, said in prepared remarks. “Nashville is a market, not unlike Seattle that has some short term supply concerns, but with high quality of life, favorable cost of living, strong projected population growth and strong job drivers, these markets should outperform the broader real estate market over the long term.”
Security Properties acquired the assets off-market in a 50/50 joint venture with Loma Linda University. These purchases bring the 4th and 5th multifamily acquisitions for the partnership.
Image courtesy of Opus 29