By Drew Hutchinson
Mar 3, 2022, 2:58pm CST
Atlanta-based apartment operator Cortland’s latest Nashville buy falls in The Nations — and carries a massive price tag.
The firm paid $128.62 million for the Broadstone Nations complex — now listed online as “Cortland at the Nations” — developed by Phoenix- based Alliance Residential Co., according to newly filed deeds. A $70.74 million Capital One loan accompanied the transaction.
The sale, brokered by Walker &
Dunlop, equals $375,000 per unit, which appears to be a record for a low-rise apartment complex, according to previous Nashville Business Journal reporting.
G.W. Williams Co. held the previous record for its October complex buy that totaled $372,406 per unit.
Cortland has been one of Nashville’s most active apartment investors over the past couple of years. The firm made headlines in fall 2021 for other colossal buys, including one complex in Antioch.
Brad Brown, Cortland’s director of acquisitions, did not immediately respond to a request for comment.
Cortland isn’t an outlier when it comes to apartment investments. The city’s multifamily market has been booming over the last few years (despite a brief dip due to the pandemic), alluring investors and regularly setting new per-unit sales records.
This is largely due to the new residents flocking from all corners of the U.S., many of whom are young and hesitant to buy a house. Many apartment complexes also fall in the city’s trendiest, busiest neighborhoods, offering tenants a short walk to work, nightlife and shopping.
As of February, the local apartment sector had a 93.4% occupancy rate — the highest it’s been in several years, according to a report from ApartmentData.com. Rental rates have also grown more than 22% over the last year, which is great news for investors, though it may strain tenants.
To meet renter demand, 9,495 units are currently under construction, and another 28,494 units have been proposed, according to the report. Nashville currently houses a total 145,621 units across 681 complexes.