Velocis Partners has bought the 246-unit Station 40 in Nashville, Tenn., for $71.8 million. Newmark brokered the sale on behalf of the seller, Sherman Residential.
Barings Debt Funds provided $49.2 million to finance the acquisition, according to Yardi Matrix. The loan is set to mature in October 2024. The asset last traded in 2018, when the now-seller bought it for $51.8 million.
Built in 2016, the two-building community has a mix of studios and one- to three-bedroom units, ranging from 381 to 1,731 square feet. Select units offer direct walk-up access, while all units have keyless home access and Nest thermostats. Community amenities include a pool, bocce court, pet spa and dog park.
Sun Belt focus
Spanning 5.9 acres at 610 Sylvan Heights Way, Station 40 is near Interstate 40, roughly 5 miles from downtown Nashville. The property is also close to Charlotte Avenue, a mixed-use corridor with several retail, dining and entertainment options.
Thanks to a significant influx of residents in recent years, more than $1.4 billion of construction has been completed along a six-mile stretch of the avenue, according to prepared remarks from Vincent Lefler, managing director at Newmark.
Velocis Partners, a private equity real estate fund manager focused on Sun Belt markets, entered the multifamily real estate market at the end of 2020 when it acquired Beverley, a 201-unit community in Charlotte, N.C. At the beginning of this year, Velocis also added The Saint Mary to its portfolio, a 240-unit community in Austin, Texas. Overall, the firm currently owns five properties in Texas, North Carolina and Tennessee.