Source: Security Properties / #Apartments #Multifamily
FRANKLIN, TN - Security Properties and an institutional investor purchased The Artessa Luxury Apartment Homes, a 250-unit Class A multifamily property located in the Cool Springs neighborhood of Franklin, TN for $57,500,000.
Sitting at nearly 90% occupancy, The Artessa is the newest multifamily asset in Cool Springs. The developer finished construction in January of 2016 and has steadily leased up the property. The property features high-end unit interiors and luxurious common areas. Security Properties intends to improve the common areas by adding an additional BBQ area, installing LED lighting, expanding the business center, adding a sports lounge, and executing on an array of other smaller projects.
The Artessa will be Security Properties' third Nashville metro acquisition in 2016.
David Dufenhorst, CEO at Security Properties stated, "The Artessa is the latest reflection of our company's continued commitment to the Nashville metro. We are seeking locations that will provide durable cash flow and strong yields. With the great Nashville economy largely driven by recession-resistant healthcare and education sectors, Williamson County having an extremely tight office market, and The Artessa having an advantageous competitive position in its submarket, we expect this acquisition to perform well over a long hold period. We anticipate strong job creation over the coming decade given The City of Franklin has over 6.5m square feet of office space and millions more under construction and planned. In fact, Williamson County led the nation in job growth as a percentage from Sept. 2014 to Sept. 2015 by increasing its employment base by 6.8%. We anticipate this trend to continue. Most recently, the greater Nashville metro grew its labor force by 5.2% over the 12-month period ending Sept. 2016, according to the Bureau of Labor Statistics."
The Artessa was financed with a Fannie Mae 10-year note at an attractive 4.1% fixed rate. Russell Oldham of CBRE represented the seller on the transaction.