Global private equity firm ACRE granted a loan of $54.5 million to HH Hunt Corp. to purchase a newly built 231-unit luxury multifamily property in Nashville, Tennessee, which has been renamed Abberly Foundry.
HHHunt acquired the property, formerly known as Alta Foundry, at 640 21st Ave. N. in the Nashville Medical District from Wood Partners for $86.6 million in a deal brokered by Newmark. The five-story property is nearly 80% occupied. The asset, which features a mix of studio, one- and two-bedroom floor plans, is located approximately 2 miles from downtown Nashville.
The three-year loan has options for two one-year extensions. It was issued through ACRE’s debt fund, ACRE Credit I, which raised $509 million in equity and closed and committed to provide more than $2 billion in loans across more than 50 trades. Roger Edwards of JLL acted as broker for the transaction.
The fund supports the acquisition, lease, redevelopment and recapitalization of multi-family assets in growing secondary markets across the United States, such as Nashville; Miami and Orlando, Florida; Denver; Dallas; Durham, North Carolina; and Charleston, SC
In June, ACRE completed a $58.5 million bridge loan through ACRE Credit I with Passive Investing for the purchase of Braxton Music City, a 236-unit luxury multifamily community in Nashville. The three-year deal also includes options for two one-year extensions. This was Passive Investing’s second loan since ACRE Credit I launched in August 2020. The first was a $15.3 million loan for a property in North Carolina.
Sam Browne, vice president of ACRE, said in a prepared statement that Nashville has proven to be a resilient market that continues to perform well in terms of occupancy levels and new product delivery.
The Nashville multifamily market has maintained a strong performance this year, with total sales volume exceeding $2.2 billion through July, according to a recent Yardi Matrix report. The Metro construction pipeline also remained strong – 20,070 units were underway this summer.
More ACRE offers
In October, ACRE closed a $52.7 million loan from ACRE Credit I to a joint venture between Graycliff Capital Partners and Buligo Capital Partners for the purchase of Johnstown Plaza, a newly constructed 252-unit Class A multifamily property in Johnstown, Colorado. the joint venture previously received a $29.5 million loan from ACRE Credit I in December 2021 for the acquisition of Retreat at Weatherville in Weatherville, NC
Over the summer, StepStone Group, a global private markets advisory and investment solutions firm, invested $300 million in a multi-pronged capital commitment to ACRE in a new partnership strategy that includes a recapitalization of the portfolio and plans to invest in multi-family properties. across the United States The engagement of StepStone, a leading pension fund distributor and one of the largest institutional advisory firms in the world, was extended and supported by the recapitalization of a multi-family portfolio of 1 500 units of a former ACRE fund. It also included a joint venture focused on multi-family development opportunities across the risk spectrum, such as value-added acquisitions, leasing and development across the Sun Belt, Midwest and Texas, and a principal fund investment .