Top 10 Nashville Multifamily Acquisition Loans
Alongside a banner year for multifamily transactions across the metro, with close to 10,000 units changing hands, lenders have kept pace, originating more than $1 billion in acquisition financing.
As the Nashville multifamily market continues to flourish, bolstered by strong population growth and a steady number of corporate relocations, both investors and lenders have taken note. With just shy of 10,000 units trading over the past year, valued at nearly $1.3 billion, financial institutions have originated roughly $1.1 billion in acquisition financing.
More than half of the total dollars originated were through GSEs, with Freddie Mac and Fannie Mae loans totaling a respective $290.6 and $247.3 million. CBRE Capital Markets was the top lender in 2018, originating six acquisition loans totaling nearly $240 million across the market.
The following list includes the largest acquisition loans across metro Nashville in 2018, excluding portfolio financing transactions. Each entry is based on data provided by Yardi Matrix.
5. IMT Germantown
IMT Capital acquired Broadstone Germantown, a 276-unit luxury asset opened in late 2016, from a joint venture between Alliance Residential Co. and PGIM Real Estate in September for $73.2 million. The buyer rebranded the asset as IMT Germantown, securing $41.2 million in Freddie Mac financing from CBRE Capital Markets at the time of the acquisition. The mortgage matures in October 2025.
Located at 1100 Third Ave. N. in Nashville’s booming Germantown neighborhood, the five-story building is within a mile of the State Capitol. Over the past two years, developers have added more than 1,300 units to the area’s inventory.
4. The Cleo
Located at 1034 W. Eastland Ave. in Nashville’s East End, The Cleo is a 291-unit luxury community completed in 2017 by LIV Development. The asset sold in April 2018 to a joint venture between Spyglass Capital Partners and Mautner-Glick for $67 million. Berkadia Commercial Mortgage originated $41.8 million in CMBS acquisition financing. The loan has a fixed note rate of 4.5 percent and matures in May 2028.
The Cleo contains a mix of one- and two-bedroom apartments, with a wide variety of floorplans ranging between 607 and 1,461 square feet. Amenities include a 24-hour fitness center, a swimming pool, storage units and a multi-level parking structure. The asset was 91.1 percent occupied as of October 2018.
3. Octave Apartments
Octave, with its 321 units, is located in Nashville’s Midtown/Music Row submarket at 2350 Eighth Ave. In December, Goldman Sachs & Co. acquired the luxury community from developer Lennar Multifamily Communities for $72.5 million. The Canadian Imperial Bank of Commerce provided acquisition financing to the tune of $48.2 million.
The community contains studio, one- and two-bedroom units with an average size of 758 square feet. Two miles south of downtown, the asset borders the Franklin Pike retail corridor and offers easy accessibility to Interstate 65. The property’s amenities include a dog park, fitness center, business center, swimming pool and parking garage.
2. Novel Bellevue Place
The 337-unit Novel Bellevue Place changed hands in December, with the Praedium Group paying Crescent Communities $83.3 million for the luxury asset. CBRE Capital Markets provided the buyer with a seven-year, $54 million Fannie Mae acquisition loan. The mortgage bears interest at 4.31 percent.
Located at 8075 Sawyer Brown Road in Nashville’s Bellevue submarket, the 12-building community opened its doors in May 2018, boasting a 91.1 percent occupancy rate as of September. The asset’s unit mix comprises one-, two- and three-bedroom apartments, with floorplans ranging between 611 and 1,478 square feet. The property’s amenities include a two-story fitness center, clubhouse, swimming pool and on-site dog park.
1. Ashton Brook
Ashton Brook, a 390-unit luxury asset located at 100 Gillespie Drive in the suburb of Franklin, Tenn., changed hands in September, when Related Cos. paid The Connor Group $86.5 million for the community. CBRE Capital Markets originated $58 million in financing for the buyer through Freddie Mac, making the package the largest acquisition loan across the Nashville metro in 2018.
The 20-building community, opened in 1995, is situated along Interstate 65, approximately 15 miles south of central Nashville. The property is within a mile of nearly 4.5 million square feet of Class A office space. The asset’s one-, two- and three-bedroom units, which range from 880 to 1,430 square feet, were 95.9 percent occupied as of December.