Starlight U.S. Multi-Family (No. 5) Core Fund announced that it has acquired Copperfield Apartments, a-288 suite, Class “A” Nashville apartment community constructed in 2015. The property was acquired on an accelerated basis in order to ensure that the capital received from the Fund’s recent refinancing of certain properties was accretively deployed for the benefit of unit-holders.
Copperfield is the Fund’s first acquisition in the fast growing Nashville, Tennessee market and immediately enhances the geographical diversification of the Fund’s portfolio while improving the average vintage of its apartment communities.
Pursuant to a purchase and sale agreement made and entered into on July 24, 2017, as amended from time to time, the Fund indirectly purchased Copperfield unencumbered for the purchase price of approximately US$48.0 million.
In connection with the acquisition of Copperfield, financing in the amount of approximately US$32.3 million has been secured for a three year term with two, one year extensions available. Subject to certain conditions, the financing is interest only and will be payable at an annual rate of LIBOR + 2.00%.
Copperfield is situated just north-east of the intersection of Highway 24 and Highway 840 in the Smyrna submarket of Nashville, approximately 30 minutes south-east of downtown Nashville, and consists of 12, three storey buildings. Interiors finishes feature gourmet kitchens with granite countertops, stainless steel appliances, pendant lighting, kitchen islands or breakfast bars and spacious 42″ espresso cabinetry. Suites also feature wood plank flooring, in-suite washers and dryers, garden tubs with tile surround, wood blinds, private balconies and additional storage.
Outdoor amenities include a resort-style saltwater swimming pool, an entertainment area with a fire pit and outdoor kitchen, a dog park, a playground and an electric vehicle charging station. Indoor amenities include a 24/7 fitness gym, a children’s play room, a luxurious modern clubhouse with a high vaulted ceiling, free Wi-Fi, a kitchen, billiards table, flat screen television and a business centre. The property also has 80 detached garage units. As of July 20, 2017, Copperfield’s occupancy was 93.1%.
“The acquisition of Copperfield represents the Fund’s first purchase in the high growth Nashville market and highlights the continued execution of the Fund’s business plan to enhance its geographical diversification and improve its average portfolio vintage,” commented Evan Kirsh, the Fund’s President.
Following completion of the acquisition, the Fund retained Greystar Real Estate Partners (“Greystar”), the largest third-party multi-residential property management company in the United States, to property manage Copperfield. Greystar currently manages 11 communities for Starlight U.S. Multi-Family in Atlanta, Georgia, Charlotte and Raleigh, North Carolina, Denver, Colorado, Houston, Texas, and Nashville, Tennessee.