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| 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.”
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| 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
