Top 10 Multifamily Transactions in the South
- Aug 20, 2019
Nearly 100 multifamily assets changed hands for $1.7 billion in the South during the first seven months of 2019—not counting communities that traded in portfolio transactions—Yardi Matrix data shows. A 26.1 percent decrease compared to the same interval in 2018, the deceleration is a result of investors pivoting to value-add opportunities. More than 90 percent of the deals that closed year-to-date through July involved Class B or C properties.
A third of the total sale volume was concentrated in Nashville, where 17 properties—five of which are on this list—traded for $573.9 million. Nashville is also one of the nation’s top markets for multifamily deliveries, with completions over the first two quarters accounting for 2.1 percent of the metro’s existing inventory.
10. Hurstbourne Estates
After purchasing the 274-unit Ashton Brook in Graymoor-Devondale, Ky., last October, Peak Capital Partners expanded its Louisville portfolio with the acquisition of two assets, including the 270-unit Hurstbourne Estates. Inland Real Estate Group sold the asset in June for $45.5 million, or $168,518 per unit, in a deal subject to a $33.5 million Freddie Mac loan from Berkadia Commercial Mortgage.
Hurstbourne Estates was roughly 95 percent occupied at the time of sale and offers one-, two- and three-bedroom units averaging 1,020 square feet. The 17-building property is situated at 10405 Watermark Place, near the EP Tom Sawyer State Park and some 14 miles from downtown Louisville. Primrose School of East Louisville, The Gardner School of Louisville and Bowen Elementary School are within walking distance of the community.
9. The Madison at Schilling Farms
In March, B & M Management bought the 324-unit community in the Collierville submarket of Memphis, Tenn., from Spyglass Capital Partners. The 25-building asset traded for $46.7 million, or $143,981 per unit. The deal was subject to a $32.7 million Fannie Mae loan from Greystone Servicing Corp.
The Madison at Schilling Farms is located at 160 Madison Farms Lane, a 5-minute drive from City Shopping Center. The asset, which was 97.5 percent occupied at the time of sale, features one- to three-bedroom units ranging from 764 to 1,370 square feet. Community amenities include a tennis court, volleyball court, playground, swimming pool and fitness center.
8. The Millennium Towne Center
In a deal with Morgan Communities. Inland Real Estate Group purchased the 276-apartment multifamily asset in Baton Rouge, La., for $49.7 million, or a per-unit price of $180,086. The property previously changed hands for $39.8 million in 2009.
Located at 6810 Jefferson Highway, the 11-building community is within walking distance of the Towne Center at Cedar Lodge shopping mall, while interstates 10 and 12 are about 3 miles away. The Millennium Towne Center, which was 95 percent occupied as of June, offers one- to three-bedroom apartments averaging 1,033 square feet. Common-area amenities include a community room, swimming pool, spa and fitness center.
7. ARIUM South Oaks
After entering the metro by purchasing two communities in Nashville, Tenn., at the end of 2017, Carroll Organization grew its footprint with the acquisition of ARIUM South Oaks. Hawthorne Residential Partners sold the 323-apartment property for roughly $50 million, or $154,953 per unit. In July, Carroll Organization sold a 188-unit community in Carrboro, N.C., for $19 million.
ARIUM South Oaks, situated at 100 Antioch Pike, was completed in phases in 1984 and 2000. The property features one- to three-bedroom apartments ranging from 742 to 1,654 square feet. Amenities at the 28-building community include 2 swimming pools, a clubhouse, a tennis court and laundry facilities.
6. The Highland on Briley
In a deal that closed in March, Lighthouse Group sold a 407-unit multifamily asset in the Clovemook submarket of Nashville. With the assistance of a $40.2 million Freddie Mac loan from Greystone Servicing Corp., Harbor Group International purchased the community for $50.5 million, or $124,078 per unit. This was the buyer’s sole multifamily property in the metro, as of July, after having sold the 212-unit Mallards Landing Apartments in May for $27.2 million.
The Highland on Briley consists of one-, two- and three-bedroom units averaging 1,040 square feet. Located at 2131 Elm Hill Pike, off Briley Parkway, the asset is only 1 mile from Interstate 40 and roughly 8 miles from downtown Nashville.
5. The Park at Callington
In a deal with Crescent Real Estate, Contour Development Group acquired the 1,253-unit community in Birmingham, Ala., for $56.1 million or $44,773 per unit. The deal was subject to a $63.2 million acquisition and development loan from Arbor Realty Trust. Contour owned two assets, totaling 1,836 apartments in the metro as of July.
The asset includes studios and one- and two-bedroom apartments ranging from 432 to 1,098 square feet. The Park at Callington is located at 700 Aspen Drive, less than 2 miles from Interstate 65, offering access to multiple shopping and dining options. The property is also situated in the vicinity of West Center Street Elementary School and a few miles away from Hall Kent Elementary School and Homewood Middle School.
4. 865 Bellevue
With the help of a $36.8 million Fanny Mae loan from KeyBank, Hamilton Zanze & Co. expanded its Nashville footprint with the acquisition of a 326-unit asset this April. Aimco sold the 20-building community for $56.7 million, or a per-unit price of $173,773. Hamilton Zanze & Co. also owns the 150-unit Post Ridge in the Bellevue submarket of Nashville.
Situated at 865 Bellevue Road, the asset offers one- to three-bedroom apartments averaging 1,099 square feet. The property, which was 93.6 percent occupied at the time of sale, is located some 2 miles from Interstate 40 and within walking distance of multiple public transportation options, two shopping centers—Bellevue Place and One Bellevue Place—and Bellevue Middle School.
3. The Henry at Fritz Farm
In March, The Dobbins Group sold a 306-apartment community in Lexington, Ky., to Passco Real Estate for $62.4 million, or $203,921 per unit. While this is Passco’s single asset in the metro, the Irvine, Calif.-based company owned 41 communities nationwide, totaling some 12,800 units, as of July.
The Henry at Fritz Farm is located at 200 Larue, at the intersection of Nicholasville Road and Man O War Boulevard and next to the Summit at Fritz Farm shopping mall. The property includes one-, two- and three-bedroom units ranging from 678 to 1,452 square feet, a fitness center, business center, swimming pool and some 460 parking spaces.
2. Providence Trail
Bluerock Real Estate purchased a 334-unit multifamily property in the Mount Juliet submarket of Nashville, with the help of a $48 million Freddie Mac loan from KeyBank. Centennial Holding Co. sold the 10-building asset for $68.5 million, or $205,089 per unit. While this is the new owner’s sole community in Nashville, the New York-based company had a 13,720-unit portfolio at the end of July.
Providence Trail, located at 2500 Aventura Drive, offers one- to three-bedroom averaging 1,068 square feet. The property is adjacent to Providence Marketplace and Graves Crossing, while Interstate 40 is about 2 miles away.
1. The Gossett on Church
Coming in at no. 1 is CBRE’s acquisition from Pollack Shores of the 306-apartment community in downtown Nashville for $101.5 million, or $267,573 per unit. Greystar will handle property management duties at the asset.
Completed last year, the Gossett on Church is situated at 1201 Church St., next to interstates 40 and 65, as well as various dining and public transportation options. The property, which features one- to three-bedroom live-work units, was roughly 93 percent occupied at the time of sale. Amenities include a clubhouse, fitness center, swimming pool and 490 parking spaces. Covered parking is available for an extra monthly fee.