CapStack Acquires Three-Building Nashville Multifamily Portfolio for $36M


Specialty investment bank CapStack Partners acquired a three-building, multifamily portfolio in Nashville, Tenn. for $35.5 million from Memphis, Tenn.-based Lennox Companies, CapStack announced last week.

The portfolio acquisition includes three, two-story, garden-style apartment complexes: The Vistas apartments, a 205-unit, 159,000-square-foot property located at 5319 Nolensville Pike in Nashville; Fawnwood Apartments, a 158-unit, 139,000-square-foot complex at 321 Walton Lane in Madison, a suburb of metro-Nashville; Archwood Meadows, a 112-unit, 116,000-square-foot complex, located at 110 Archwood Place in Madison.

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CapStack plans to engage a multi-million dollar renovation and repositioning program for the three complexes to “unlock embedded value and cash flow opportunities,” according to a release from CapStack.

“This acquisition directly aligns with our investment parameters,” CapStack Chief Executive Officer David Blatt said in prepared remarks. “Each property is exceptionally well-located, has a stable operating history and offers a significant value-add opportunity. We intend to reposition the portfolio into high-quality workforce housing to capitalize on the strong demand for this type of product in Nashville.”

This portfolio acquisition comes as an early part to the firm’s push to invest in value-add and opportunistic multifamily assets across the Southeast. Last July, CapStack expanded its operations with the inclusion of a investment advisory platform—just a few months after the creation of its agency lending division that March. One month later, the firm received a mandate to acquire multifamily assets, sourcing opportunities in-house and through local and regional landlords and developers.

“We are pleased to be able to offer this strategy as part of our investment advisory platform and so soon after its launch,” Blatt said. “Our intention has always been to manage our clients’ investments throughout their respective life cycles, and today we are more than capable of doing just that.”

CapStack completed the Nashville buy with operating partner North Carolina-based MACC Venture Partners, which has been tapped to manage the three complexes. In keeping with the firm’s pledge to utilize local operators and developers, Blatt told Commercial Observer his firm is looking “to bring in partners like MACC that have on-the-ground operational expertise in the markets that we target.”

Blatt added in prepared remarks: “When I launched CapStack, the broader vision was always to build an institution that blends highly informed capital markets advisory with investment management solutions for clients seeking alternative investments like real estate.”

Neither officials at Lennox Companies nor its asset management arm, Lennox Living, could immediately be reached.