NASHVILLE, TN - Federal Capital Partners (FCP) acquired a 1,448-unit, four-community apartment portfolio in Nashville, TN for $84 million through a joint venture with Middleburg Real Estate Partners. This is FCP's first investment in Nashville; one of the strong East Coast markets into which FCP is expanding.
"When entering new markets, we like to lead with strong partners and strong income-oriented investments," said FCP Managing Partner, Lacy Rice. "This portfolio gives us those important advantages." Middleburg Real Estate Partners will continue to manage the communities. Mr. Rice continued, "We've been studying Nashville for over two years. Its strong demographic trends make us optimistic this investment will lead to investments in other residential and commercial properties in Nashville."
FCP has renovated and repositioned over 20,000 work-force housing rental apartment units over the past ten years and provides both equity and mezzanine debt for office, retail and industrial properties in its core markets. Mr. Rice added, "Identifying off-market opportunities with established local owners and managers in a city with strong job growth and a diverse economy has been a core practice for FCP; one that allows us to apply capital and asset management skills, increasing the value of apartment communities that are in high demand for their locations and price points."
"We are excited to reposition these properties with a partner that brings not only capital, but also expertise in executing value add strategies," stated Chris Finlay, Managing Partner at Middleburg. "These properties have been capital starved and are ripe for our renovation strategy to increase their value and also provide an improved resident experience," continued Mr. Finlay.
The four apartment communities, Mission Stone Ridge, Mission Hickory Highlands, Mission Priest Lake and Mission Madison Square, are located in close-in suburban locations with excellent access to downtown Nashville, nearby job centers and retail amenities. Each community features family friendly one-, two- and three-bedroom apartments along with lifestyle features such as pools, volleyball courts, fitness centers and tennis.
Acquisition debt financing was provided by Sadhvi Subramanian, Michael Antonelli and Jennifer Niedzwiecki at Capital One in Washington, DC and arranged by K.O. Kennedy and Scott Brady at CBRE in Nashville.
Baird served as the exclusive financial advisor to Middleburg Real Estate Partners on this transaction.