Covenant Capital Group has paid $52.2 million for The Metropolitan, a 216-unit multifamily asset in Nashville, Tenn., according to documents filed with Davidson County. FirstBank of Tennessee financed Covenant’s purchase with a $36.5 million loan. The seller, a private investor based in Palm Beach, Fla., originally bought the community in late 2017 for $37.9 million.
Located at 101 Brixworth Lane in Nashville’s Green Hills neighborhood, the property was built in 1984 and features five buildings with one- and two-bedroom floor plans between 500 and 1,000 square feet, according to the community’s listing page on Apartments.com. The Metropolitan offers a range of amenities, from a swimming pool to a business center and even valet garbage service.
Music City Turns Up the Volume
Nashville ended last year on a strong note, with rental rates up a staggering 19% for the year, according to a fourth-quarter report from Cushman & Wakefield. Responding to unparalleled demand, developers had nearly 8,500 units under construction in the central part of the city alone at the end of last year.
The market has grown so significantly as a result of population growth and corporate relocations in the past few years. Jobs in the financial activities and professional and business services sectors have exploded, up 4.6% and 7.9% year-over-year through February, as massive corporations like Amazon along with a large number of smaller businesses shift operations to the metro as one component of a larger shift of jobs to the Sun Belt region, a Hoover Institution report found, alongside — and followed by — rapid population shifts.