South Nashville Class A Community Scores $47M Refi

The new loan from Ares Management retires previous Fannie Mae financing taken for the 359-unit multifamily asset.
The Melrose

A joint venture between Cottonwood Residential, Fulcher Investment Properties and The Parkes Cos. has taken a $47.1 million refinancing package for The Melrose, a 359-unit Class A community in Nashville, Tenn., according to public records. Ares Management provided the four-year mortgage, which pays down a series of variable-interest Fannie Mae loans taken in 2017 and 2018.

Built in two phases in 2014 and 2018, The Melrose is on the site of a 1940s-era historic theater. The four-building community has one- and two-bedroom units. Amenities include a saltwater swimming pool, a demonstration kitchen, two fitness centers, a dog park and music performance space. The apartments were 93 percent occupied in November, according to Yardi Matrix. The property also has a number of retail units in addition to its multifamily component.

Located 2.5 miles south of downtown Nashville at 2600 Eighth Ave. S., the community is at the intersection of interstates 65 and 440. The property is at the southern end of the Franklin Pike retail corridor, connected to the wider metro by a public bus route.

With financing costs at a historic low, borrowers continue to seek out advantageous refinancing options. Lenders originated more than $2.2 billion in multifamily loans in 2019 for metro Nashville assets, per data from Yardi Matrix, with nearly half of the origination volume utilized for refinancing. In October, IMT Capital secured a $53 million loan for a 330-unit community less than half a mile north of The Melrose.