Despite activity slowing in some sectors, Nashville’s commercial real estate remained hot investment purchases in 2016.
Out-of-town and local investors snapped up many area apartments, hotels, office, industrial and retail buildings, and land in deals totaling billions of dollars, according to preliminary tracking by New York-based research firm Real Capital Analytics.
The office sector produced the biggest portfolio deal with San Francisco-based investment manager Stockbridge Capital paying a JP Morgan Asset Management-managed fund roughly $165 million for Corporate Centre buildings three through seven in Cool Springs. Irvine, Calif.-based investor Steadfast Apartment REIT Inc.’s $110 million purchase of The Landings of Brentwood apartments in Franklin was the biggest deal in the multifamily sector and for an individual property here in 2016.
Overall, there were about $1.4 billion worth of multifamily investment sales deals in the Nashville area during 2016, up 10 percent from 2015, according to CBRE | Capital Markets’ preliminary local tracking of apartment transactions involving more than 50 units.
“However, although the average transaction increased from $21 million to $27 million, the number of sales we tracked dropped from 60 in 2015 to 52 in 2016,” said Russ Oldham, senior vice president of multifamily investment properties group at CBRE | Capital Markets . “That’s a trend we expect to continue, as there could be more Class A assets available in the coming years, while older assets with an opportunity to add value-add are getting harder to find.”
Other notable multifamily deals included Salt Lake City-based Cottonwood Residential’s purchase of the entity that owned The Melrose apartments and more than 26,000 square feet of fully leased retail and restaurant space at 2600 Franklin Pike.
In the hotel sector, Rockbridge Capital’s $81 million purchase of the Hilton Garden Inn Nashville Downtown/Convention Center was the top transaction in 2016.
Here’s a list of some of the top 2016 local deals in various real estate categories based on Real Capital Analytics’ tracking, with additional data on the industrial market provided by Cushman & Wakefield Nashville.
1. The Landings of Brentwood (Franklin)
Price: $110 million
Buyer: Steadfast Apartment REIT
Seller: Venterra Properties, GE Capital Real Estate
2. One MetroCenter (Nashville)
Price: $67.38 million
Buyer: Sherman Residential
Seller: The Residential Group
3. Bellevue West
Price: $63.3 million
Buyer: Oaktree, Bascom Group
Seller: Arenda Capital Management
4. The Artessa (Franklin)
Price: $57.5 million
Buyer: Security Properties
Seller: Embrey Development
5. Venue at Glenbrook (Hendersonville)
Price: $52.7 million
Buyer: Sentinel Real Estate
Seller: Carroll Family Partners; Michael Penuel