NASHVILLE, TN – A fund managed by Nashville-based Covenant Capital Group has completed the sale of 500 5th Avenue, a 170-unit apartment community located in downtown Nashville originally built in 1961. The property was formerly known as the Metro Manor Apartments.
The sale comes after Covenant invested over $8.2 million in the project, including spending more than $4 million to renovate and modernize the property.
“We’re pleased to have been able to invest in our hometown by significantly updating 500 5th Avenue and adding modern energy efficiencies to extend its life and ensure its standing as a vibrant community for downtown Nashville residents for decades to come,” said Govan D. White, managing partner and co-founder of Covenant Capital Group.
Covenant purchased the property on June 16th, 2015 for $15,760,000. Selling it on July 28th, 2017 for $27,300,000 to 500 Fifth, LLC.
With Covenant’s more than $4 million enhancements, the project was able to add many features that enhance life at the property, sustaining valuable apartment inventory in Nashville’s downtown market in the process.
This included aesthetic enhancements like a new modern entrance, fitness center, Wi-Fi and business lounge, bike room, leasing office as well as a sky terrace and rooftop pool. In addition, Covenant renovated all apartment interiors with new granite countertops, all new stainless steel energy efficient appliances, new cabinetry and modern finishes.
Covenant’s efforts also went to increasing the energy efficiency and greening the building. It replaced all windows with double-paned energy efficient windows. All existing toilets and faucets were also refitted with low-flow plumbing fixtures which delivered a 30% reduction in water consumption at the property – all of which reduces costs to residents.
Covenant Capital Group, formed in 2001, is a value-add investment manager with an exclusive focus on the acquisition and renovation of apartment communities in major southeastern and mid-atlantic markets. It focuses on transforming and repositioning properties into premier institutional quality assets. Covenant has over $1 billion in real estate assets under management and controls over 9,250 apartment units.