May 30, 2017
CRC Acquires 320-Unit Apartment Community in Murfreesboro, TN for $47.3M
Acquisition represents ninth for Continental Realty Fund IV, a $164 million fund that seeks value-add retail and multifamily opportunities in Mid-Atlantic and Southeast regions
Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has acquired Bell Murfreesboro, a 320-unit apartment community located at 3920 Puckett Creek Crossing in Murfreesboro, Tennessee for $47.3 million. The asset was purchased from Bell Partners, Inc., who was represented by Russ Oldham, Steve Massey and Brett Kingman of CBRE Nashville.
Constructed in 2008, the apartment community was acquired on behalf of Continental Realty Fund IV, L.P., which is focused on the acquisition of value-add retail and multifamily properties situated throughout the Mid-Atlantic and Southeast regions of the United States. This represents the fifth residential community and ninth overall asset purchased by the Fund, as well as the first in the Tennessee marketplace.
“Located near Nashville, Bell Murfreesboro satisfied each important fundamental we seek including the presence of a rapidly expanding population, sustained job growth over an extended period, the influx of new and expanding businesses, and the presence of retail shopping venues within close proximity, In 2016, the Murfreesboro submarket featured the fifth highest job growth in the country, and the city population has been growing by 10% during the past five years, according to the U.S. Bureau of Labor Statistics.” stated J.M. Schapiro, Chief Executive Officer of CRC.
Bell Murfreesboro is comprised of thirty-eight three-story buildings, with all units having individual entrances, with the site contained on 16.4 acres. The property includes a range of community amenities such as a clubhouse and pool, recreational area and pond. The one, two and three bedroom units combine for an average unit size of 1,028 square feet, and seventy-three units feature one or two-car garages.
Additional highlights of the apartment homes are the availability of front and side porches, fireplaces, built-in entertainment nooks, dining areas and breakfast bars, ceramic tile in the kitchen and foyer area, oversized garden tubs, nine foot ceilings, a gourmet kitchen with pantry and abundant natural lighting based on the interior configuration of the units. The single-family home design of the buildings results in no breezeways, while providing direct access to the units and garage areas.
The property is located approximately thirty-five miles southeast of Nashville with direct access via Interstate 24. The average household income in Murfreesboro exceeds $78,000, a figure that is more than $3,000 per household higher than what is contained in the greater Nashville metropolitan region. Significant employers located near the apartment community include Middle Tennessee State University, Rutherford County Government, Nissan North America and the State Farm Insurance Company.
The population of Murfreesboro is projected to expand to more than 300,000 people over the next five years, with the metropolitan area ranked as the thirteen fastest-growing metro by the United States Census Bureau last year. Apartment rent growth in this submarket has averaged nearly 5% over the past five years, with occupancy levels hovering in the 96% range. Rent growth has increased by approximately 23% over the past five years, while home prices escalated by more than 11% last year.
“Establishing a foothold in Rutherford County and Murfreesboro with this excellently-maintained and leased property provides us with a strong foundation to pursue additional value-add opportunities as we seek to build critical mass in the greater Nashville region,” stated Ari Abramson, Vice President of Acquisition of Continental Realty Corporation. “We intend to enhance the common area amenities and upgrade the apartment interiors with high-end finishes to elevate the community within the submarket,” he added.
Continental Realty Corporation, headquartered in Baltimore and founded in 1960, is a full-service commercial real estate investment and management company. The privately-owned firm owns and manages a diversified portfolio of retail centers consisting of over 3.5 million square feet of space, as well as apartment communities featuring nearly 10,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the value of the portfolio exceeds $1.5 billion.
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