Waterton Enters Nashville With $140M Buy

Wells Fargo provided $105 million in acquisition financing through Freddie Mac for the nearly 1,000-unit value-add portfolio.
Village Hills at Nashboro Village

Starwood Capital Group has sold Nashboro Village, a 994-unit Class B multifamily portfolio in Nashville, Tenn., to Waterton for $140 million, according to Davidson County records. Wells Fargo provided the buyer with $105 million in acquisition financing through Freddie Mac. The mortgage matures in 2027.

The acquisition marks Waterton’s first purchase in the metro amid steady expansion into a number of other high-growth multifamily markets. Starwood had picked up the portfolio as part of a $2.9 billion purchase from The Milestone Group in April 2017.

Starwood’s disposition reduces its Nashville portfolio to 865 units, Yardi Matrix shows. In September, the company also sold a 296-key hotel near the city’s airport for more than $80 million. The investor is not stepping off the Music City stage, however: In January, the firm joined forces with Crescent Communities and Pearl Street Partners to break ground on a 270-unit mixed-use opportunity zone project just outside The Gulch.

Value-add potential

Center Court at Nashboro Village

The properties have one- to three-bedroom apartments with floorplans from 645 to 1,427 square feet. Amenities include swimming pools, tennis courts, a dog park, a fishing pond and covered parking. The occupancy across the portfolio was 93.2 percent in December, 190 basis points below the metro average, according to Yardi Matrix. Waterton plans to invest in improvements to amenities, according to Nashville Business Journal, with unit renovations to occur on a rolling basis as leases expire.

The value-add portfolio spans five properties with a total of 72 buildings set on 66 acres. The assets include:

  • Center Court at 740 Nashboro Blvd.
  • Doubletree at 2228 Doubletree Lane
  • Deerfield at 300 Long Hunter Lane
  • Village Hills at 620 Village Hills Drive
  • Village Green at 325 Village Green Drive

The assets are near two grocery-anchored retail properties and are less than 5 miles from Nashville International Airport. A public bus route directly links the neighborhood with central Nashville, 11 miles to the northeast.