NASHVILLE, TN - Spirit Bascom Ventures, an affiliate of Irvine, California based The Bascom Group, together with funds managed by Oaktree Capital Management, closed on a purchase of two multifamily assets totaling 838 units in Nashville, Tennessee. This was the second transaction in three months for the $400 million venture. The portfolio includes Bellevue West, a 560-unit community located at 100 Ridgelake Parkway, in Nashvilleand Highlands at the Lake, a 278 unit community located at 100 Arbor Lake Boulevard in Hermitage, Tennessee. The sale closed on February 2, 2016. Vincent Lefler of JLL represented the seller on the transaction.
The debt financing was sourced by Brian Eisendrath and Annie Rice of CBRE Capital Markets. San Francisco-based ACORE Capital, a commercial real estate finance company focused on originating, acquiring and managing commercial real estate loans and other debt investments, provided financing to acquire the portfolio.
Both properties were built in 1986 and have very little deferred maintenance which will allow for a highly accretive value add strategy to move upmarket with a high end interior unit renovation program. The upgraded interior unit spec will rival new luxury product that incorporates the use of vinyl wood flooring, and modern kitchens and bathrooms featuring a name brand stainless steel appliance package and contemporary cabinet lighting and plumbing fixtures.
Bellevue West, located in the highly desirable Bellevue submarket, is less than 15 minutes from both downtown Nashville/West End and the established suburban employment center of Brentwood. The local topography creates naturally high barriers to entry that has limited new supply. The asset is a low density site with a best-in-class amenity package featuring a resort sized clubhouse, fitness center and pool deck situated amongst lakes and rolling hills.
Highlands at the Lake is located in the fast growing Hermitage submarket that benefits from its direct access to downtown Nashville and the airport corridor job center along Interstate 40. The property offers direct waterfront access to popular recreation activities at Percy Priest Lake.
David Nachman, a principal of Spirit Bascom Ventures, explains, "We are excited to be participating in the dynamic growth of the Nashville market with these two assets poised for transformative repositionings." Scott Zwilling of Spirit Bascom Ventures, adds, "As new development pushes pricing higher we continue to see attractive opportunities to redevelop Class B properties our markets."