ACRE is providing a $58.5 million loan for the development of “Braxton Music City” in Nashville, Tennessee.
NASHVILLE, Tenn.–(BUSINESS WIRE)–ACRE, a global real estate private equity firm, today announced that it has completed a $58.5 million bridge loan with Passive Investing, to support the upscale multi-family apartment community “Braxton Music City” in Nashville, Tennessee.
Issued through ACRE’s latest loan fund “ACRE Credit I”, the loan follows Passive Investing’s recent purchase of the community of 236 units. Executed in May, the 3-year deal includes options for two one-year extensions.
Ware Shipman of JLL’s Capital Markets division served as prime broker for the transaction.
“Nashville has long been one of the fastest growing rental housing markets in the country, thanks to a steadily growing population and strong economic indicators that support long-term sustainable growth,” said Daniel Jacobs, managing partner at ACRE. “We are proud to continue our activity in the market and to continue to develop our relationship with an innovative and accomplished partner in passive investing by supporting its success with Braxton Music City.”
The deal for Braxton Music City was one of four loans, totaling approximately $169.7 million, issued through “ACRE Credit I” in May alone. Other loans finalized during the month were issued to support multi-family developments in Denver, Colorado; Fort Worth, TX; and Fredericksburg, Virginia.
The loan also represents the second granted to Passive Investing since the launch of ACRE Credit I in August 2020, following a $15.3 million loan for a property in North Carolina.
To date, the fund has raised $509 million in equity and committed to providing more than $2 billion in full loans across 52 transactions to support the acquisition, lease, redevelopment and recapitalization of multi-family assets in growing secondary markets in the United States.
“Demand for high-quality rental housing shows no signs of slowing across the country, especially in smaller metro areas where new population easily outstrips supply,” Jacobs said. “This momentum has led to more multi-family investors and developers partnering with ACRE, as we continue to grow our increasingly active and widely recognized lending vehicle in ‘ACRE Credit I.’ success of the platform to date and we look forward to continuing to support our growing network of partners and the rental housing industry as a whole in the months and years to come.”
Located at 2165 Nolesville Pike, Braxton Music City was built and delivered by Westplan Investors in early 2022. Since opening, the community has seen significant rental momentum, as it is currently 40% occupied and 45% leased.
The development’s 236 luxury units boast a wide range of amenities, with built-in features and finishes including stainless steel appliances, granite countertops, energy-efficient lighting, vinyl and hardwood floors. , full-size washers and dryers, and large walk-in closets. . Community perks include a 24-hour gym, resort-style pool with cabana, dog park, pet wash spa, bike storage, sky lounge, cafe, space of coworking, a community home and a recording studio with access reserved for residents.
Braxton Music City is located just 4.5 miles south of downtown Nashville and offers easy access to a number of entertainment options and other destinations, including the May Hosiery redevelopment and Nashville Warehouse Co. – a 150,000 square foot creative office and live music venue exterior – as well as The Fairgrounds Nashville and Geodis Park, home of the Major League Soccer franchise Nashville Soccer Club.
ACRE is a vertically integrated private equity firm specializing in commercial real estate through active investments in the direct equity and debt capital markets as well as special situation opportunities. ACRE manages a global portfolio of over $3.1 billion concentrated in US multifamily with holdings in the UK and Southeast Asia through separate verticals. ACRE has offices in Atlanta, New York and Singapore.