Top 5 Multifamily Transactions in Nashville

Several major deals have closed so far this year, with the bulk of sales including older assets in one quadrant of the metro.

Investors, developers and employers have long touted Nashville, Tenn., as a city on the rise. Boasting considerable population, job and rent growth, there are many opportunities in the metro across all real estate asset types. Multifamily properties continue to perform well, evidenced by rising rents and nearly $500 million in deals closed in the first half of the year.

Multifamily buyers have overwhelmingly targeted value-add assets this year, with the bulk of transactions through June encompassing low mid-range to workforce housing in the metro’s southeastern reaches. The table below highlights the top five multifamily transactions closed during the first half of 2019, based on data from Yardi Matrix.

5. Allegro on Bell

Allegro on Bell

Near the start of the year, Cottonwood Residential sold the 327-unit Brentwood—now rebranded as Allegro on Bell—to Electra America for $39.5 million. The buyer secured $27.5 million in acquisition financing through a 10-year CMBS loan originated by SunTrust Bank. The note bears interest at a fixed rate of 4.66 percent.

The Class B multifamily asset, constructed in 1986, is located at 1500 Brentridge Drive in the Antioch-South submarket, some 10 miles southeast of downtown Nashville. The garden-style community includes one- and two-bedroom units, which were 89.9 percent occupied in May.

4. ARIUM South Oaks

Hawthorne South Oaks

CBRE provided a Freddie Mac acquisition loan for Carroll Org.’s $50.1 million purchase of the 323-unit Hawthorne South Oaks in the metro’s Elm Hill/Woodbine submarket. The buyer renamed the community as ARIUM South Oaks. The deal was part of a larger, $88.9 million portfolio transaction—involving Hawthorne Residential Partners—which included the sale of a 268-unit property in North Carolina.

ARIUM South Oaks’ 28 buildings opened in two phases: Initially, 173 units came online in 1984, followed by a 150-unit expansion completed in 2000. The community’s amenity mix includes two swimming pools, a car wash and two dog parks.

3. The Highland on Briley

The Highland on Briley

Lighthouse Group’s $50.5 million sale of a 407-unit Class B asset to Harbor Group International marked the metro’s third-largest transaction in the first half of 2019. Greystone provided a $40.2 million acquisition loan to the buyer. The newly rebranded Highland on Briley last traded in early 2011 for $14.5 million.

The community, built in 2003, sits on 24.2 acres approximately 5 miles east of Nashville’s city center. The asset has a wide range of resident amenities, including basketball, tennis and volleyball courts, three swimming pools and a business center.

2. 865 Bellevue and Post Ridge Apartments

865 Bellevue Apartments. Image via Google Maps

Hamilton Zanze entered the metro with a bang in April with the $80.2 million acquisition of two communities from Aimco. The properties total 476 units and are both located in the Bellevue submarket. Cantor Fitzgerald partnered with Hamilton Zanze to purchase the 326-unit 865 Bellevue Apartments, and two private investors joined forces with the buyer on the 150-unit Post Ridge Apartments buy.

KeyBank provided acquisition financing for the deal through Fannie Mae. The $36.8 million mortgage encumbering 865 Bellevue carries a 4.04 percent interest rate over a 10-year term, while the smaller, 10-year loan of $18.1 million on Post Ridge bears a fixed, 4.37 percent interest rate.

1. The Gossett on Church

The Gossett on Church

Pollack Shores’ $101.5 million disposition of The Gossett on Church in June marked the metro’s largest multifamily deal in the first half of the year. The transaction marked buyer CBRE Global Investor’s first acquisition in the metro. The community opened its doors in The Gulch in early 2018, following three years of construction backed by a $51.5 million loan.

The community contains three live-work apartments in addition to one-, two- and three-bedroom units. The property’s amenity mix includes a dog park and spa, 9,000 square feet of ground-floor retail as well as electric vehicle charging stations.

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