Passco Companies Acquires 452-Unit Community in Nashville for $51M
- Apr 07, 2016
Nashville, Tenn.—Passco Companies LLC recently acquired The Overlook, a 452-unit multifamily community in Nashville, Tenn. The property was purchased for $51.4 million.
Located at 727 Bell Road, The Overlook features one-, two- and three-bedroom floorplans with sizes ranging between 763 and 1266 square feet. The property was 95 percent occupied at the time of the sale, with rents starting as low as $905 for a one-bedroom and $1485 for a three-bedroom unit. The Overlook is a 15-minute drive to Vanderbilt University and Medical Center, as well as Nashville’s downtown core.
“On a near-term basis, our asset will quickly gain value as Passco completes minimal interior upgrades and begins its professional management program,” Colin Gillis, vice president of acquisitions of Southeast for Passco, said in a prepared statement. “With almost no vacancy in the submarket, this property has previously been rented at below market rates.”
More than 1,600 healthcare jobs are coming to the submarket as a new Community Health Systems office campus is scheduled to open next year, making the property a strong investment for the company.
“Looking at the longer term, as demand for Nashville housing continues to dramatically rise, The Overlook currently provides quality housing for approximately half the price per square-foot of the downtown market,” Gillis pointed out. “This bodes quite well for future value increases.”
Russ Oldham, senior vice president at CBRE represented both Passco as the buyer and Olympus Properties as the seller in the transaction. Chris Black of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing for Passco through Fannie Mae.
Image courtesy of Passco Companies LLC