Nashville Apartment Market
Since rebounding from the recession, the Nashville market has been on a hockey stick trajectory.
The office market has stabilized at 8.5% vacancy, the overall retail market is at 3.3% vacancy.
Both lower than national averages.
And housing is fighting to keep up with the demand from new residents.
Over 6,000 apartment units were constructed in 2017 alone.
The Nashville apartment market definitely felt the impact of that many units.
Vacancy rates skyrocketed as high as 22% in 2017.
Although too much supply was delivered in the last year, it’s filling faster than ever.
Outlooks are strong for the future of multi-family in Nashville.
The Cleo Sells for $67,750,000
The Cleo proves that the East Nashville apartment market is strong.
Delivered in April of 2017, The Cleo is a 5-story mixed-use building just off Gallatin in East Nashville.
The 291-unit project leased up faster than average – 30 units per month as opposed to the market’s 18 units per month.
The project was 93% occupied at the sale, which fetched $232,817 per door.
To put this sale into perspective:
Stacks on Main, also in East Nashville, sold last year at a price of $233,000 per door.
The Carillon, adjacent to First Tennessee Park, sold November 2017 for $240,000 per door.
The Charlotte at Midtown sold March 2017 at $224,000 per door.
Only a handful of apartment complexes have sold for over $200,000 per door in Davidson County.
The Cleo is one of two in booming East Nashville.
Outside Investment in Nashville Strong
Nashville lost its “secret” status years ago.
And investment groups continue to show love to the Nashville apartment market.
New York based Mautner-Glick Corporation purchased The Cleo.
The financing? None. They paid all cash.
This seems to be a growing trend among funds.
In the last few months alone, I’ve spoken with investors from Georgia, Texas, California, and even Australia.
It’s hard to deny that Nashville is now one of the hottest markets for investments.