Monday, April 11, 2016

Passco Companies Scores a Top Hit in Nashville, TN With $51.4 Million Acquisition of Value-Add Multifamily Community

  
The Overlook Apartments, 727 Bell Road, Nashville, TN

 NASHVILLE, TN – Passco Companies, LLC has acquired The Overlook, a 452-unit, 95 percent-occupied multifamily community in Nashville, TN for $51.4 million, according to Colin Gillis, Vice President of Acquisitions, Southeast for Passco Companies.

“This is the reality of finding a property with good bones, located in a great market, which will give us the ability to drive value both in the short-term and in the long-term,” Gillis says. 


The community is a particularly strong investment, as it has consistently high occupancy and is well-maintained, but has not yet been updated since its completion in 1998. 

 The Overlook has large open-plan floorplans with up to 1,250-plus square feet, and sought-after amenities including a high-end fitness center, two pools with cabanas, and nicely landscaped grounds. 

 “The community is located bike-riding distance from both jobs and retail offerings.  In addition, another 1,600 healthcare jobs are coming to this submarket with a new Community Health Systems office campus anticipated to open next year,” Gillis notes. 

The Overlook is also a 15-minute drive to Vanderbilt University and Medical Center, as well as Nashville’s downtown core, in which nearly 3 million square feet of new office space is in the development pipeline. 

“On a near-term basis, our asset will quickly gain value as Passco completes minimal interior upgrades and begins its professional management program,” Gillis adds. “With almost no vacancy in the submarket, this property has previously been rented at below market rates.”

Colin Gillis
“Looking at the longer term, as demand for Nashville housing continues to dramatically rise, The Overlook currently provides quality housing for approximately half the price per square-foot of the downtown market,” he points out.  “This bodes quite well for future value increases.”

Passco already owns a neighboring multifamily community in the same neighborhood, called Cambridge at Hickory Hollow, which it acquired in 2014.  Passco has been able to drive value through a similar upgrade program at that property.

Passco now acquired this second property based on its first experience and on seeing continuing growth in the immediate submarket, as well as the new development projects coming to the greater Nashville area.

“Nashville’s rapid growth is no longer news to anyone,” Gillis says.  “We were seeking another opportunity in the market as it perfectly matches our continued strategy of identifying and acquiring value-add and core assets in growing markets throughout the country that are positioned to perform well over time.  In fact, we are now pursuing additional multifamily opportunities here.”

The Overlook is located at 727 Bell Road in Nashville.

Russ Oldham, Senior Vice President with CBRE represented both Passco as the buyer and Olympus Properties as the seller in the transaction. Chris Black of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing for Passco Companies through Fannie Mae.
  
For a complete copy of the company’s news release, please contact:

Lexi Astfalk / Jenn Quader
Brower, Miller & Cole
(949) 955-7940
         

No comments:

Post a Comment