NASHVILLE, TN - Security Properties purchased Opus 29 and Note 16, a 139 unit and an 86 unit Class A multifamily property, located in Nashville TN for $34.4 million and $19.33 million, respectively.
Opus 29 and Note 16 are located in the urban core of Nashville in the West End and Music Row neighborhoods, respectively. Opus 29 is adjacent to Centennial Park and just Northwest of Vanderbilt Stadium, while Note 16 is located in the Music Row area just East of Vanderbilt University's Peabody Esplanade and Vanderbilt University Medical Center, and two blocks North of Belmont University.
Job growth in the submarket is projected to be strong, particularly in the Education and Healthcare Sectors. Education job drivers include Vanderbilt University, which has over 12,000 students and over 4,000 faculty, Belmont with over 7,400 students, and Tennessee State University with over 9,000 students. Healthcare is also booming in Nashville, with over 300 healthcare companies having operations in Nashville including Centennial Medical Center with over 640 beds and Vanderbilt University Medical Center (nearly 20,000 employees).
Security Properties believes in the Nashville market. According to Barrett Sigmund, Sr. Director at Security Properties in Seattle, WA the acquisition was made because "Nashville is an 18 hour city with strong appeal to millennials and a diverse economy dominated by Education and Healthcare, two industries that have historically been recession resistant. As we get later in the current real estate cycle, we strive to deploy equity in increasingly strong locations. These deals, which were acquired on an off-market basis, have been capitalized using 10 year, fixed rate debt at 60% LTV. Nashville is a market, not unlike Seattle that has some short term supply concerns, but with high quality of life, favorable cost of living, strong projected population growth and strong job drivers, these markets should outperform the broader real estate market over the long term."
Security Properties has purchased the assets off-market in a 50/50 joint venture with Loma Linda University. This represents the 4th and 5th acquisitions between the two groups.
Source: Security Properties / #Apartments #Multifamily