An affiliate of Irvine-based Steadfast Cos. has bought a big apartment complex in the suburbs of Nashville, Tenn., in what local news reports say is the priciest multifamily deal the area has ever seen.
The Steadfast Apartment REIT Inc., a nontraded real estate investment trust formed in 2013, paid $110 million for The Landings of Brentwood apartment complex, a 724-apartment community about 5 miles south of Nashville.
The deal works out to a price of nearly $152,000 per unit for the complex, which was built in the 1980s and was 96% leased at the time of its sale. It’s the largest deal on record for a multifamily complex sale in Middle Tennessee based on total price, according to the Nashville Business Journal.
Complexes in the region have traded hands for as much as $287,000 per apartment in the past few years, according to the publication.
The complex “is located within one of Nashville’s most desirable markets, boasting an average household income of $132,000 and a top-ranked school district,” said Ella Shaw Neyland, president of Steadfast Apartment REIT, in a statement. “Additionally, we believe Nashville’s broad economic base and its appeal to relocating businesses should keep job growth healthy.”
Steadfast Income REIT now owns 32 properties that it paid nearly $1.4 billion for in 11 mostly Midwest states.
The investment fund said it seeks “well-located assets in secondary markets with a value enhancement potential.” It owned three other complexes in Tennessee totaling 617 units as of a few months ago, according to regulatory filings.
The Brentwood complex has 41 garden-style residential buildings with one- and two-bedroom floor plans that average 959 square feet. Monthly rents there average about $1,136, according to Steadfast, which operates several investment funds that buy apartments and other product types.
It said it plans to initiate a “significant value enhancement program” at the property.
Garden Grove HQ
King Shocks, a Garden Grove-based maker of shock absorbers and other automotive products, has bought an industrial property in its hometown for a new, larger headquarters.
The company recently closed on the purchase of 12472 Edison Way, a 55,576-square-foot industrial facility about half a mile north of the Garden Grove (22) Freeway near Lampson Avenue.
An affiliate of Irvine-based LBA Realty sold the building for a little more than $9.4 million, or $170 per square foot. LBA acquired the property in 2012 as part of a reported $144 million portfolio deal of local industrial properties previously owned by Kilroy Realty.
The latest sale was brokered by Voit Real Estate’s Mike Bouma, Paul Caputo and Eric Smith.
The property previously served as an Isuzu Motor Co. research and development facility, housing offices, a fuel storage room, and a car wash for the automotive company.
The facilities should fit well for King Shocks, a manufacturer and servicer of custom-made automotive shock absorbers, as well as performance racing products for utility vehicles and professional racing.
“There is around a 2% vacancy rate in the area and it took almost a year to find the right building for this group,” Voit’s Caputo said in a statement.
King Shocks had been leasing a 17,500-square-foot headquarters facility on Joy Street, according to brokerage data.
SD Office Additions
Irvine Company’s office division has finished construction of a new low-rise building in the University Town Centre area of San Diego and is working on another office property nearby.
The Newport Beach-based company late last month opened its Eastgate Summit, a 65,000-square-foot, three-story office building near the intersection of the 805 and I-5 freeways close to La Jolla.
It’s part of the company’s 1.5-million-square-foot, 24-building Eastgate office campus near the University of California-San Diego.
The developer notes that the property is “situated on one of the most visible hilltops in coastal San Diego” and has ocean views.
The new office is close to Eastgate Terrace, a nearby three-story, 96,000-square-foot building that’s also under construction. Steel for that project recently was erected, the company said.
Irvine Co. also recently built La Jolla Center, a nearby 15-story, 306,000-square-foot office tower. The University Towne Centre property opened last year and is now leasing.
The company owns more than 7 million square feet of offices in San Diego County, where it’s the largest office owner.
