Bridge loan highlights $169M in May activity from leading real estate private equity firm’s debt fund ‘ACRE Credit I’
NASHVILLE, Tenn.–(BUSINESS WIRE)–ACRE, a global real estate private equity firm, today announced it has finalized a $58.5 million bridge loan with Passive Investing, to support the upscale multifamily apartment community ‘Braxton Music City’ in Nashville, Tennessee.
Issued through ACRE’s latest debt fund “ACRE Credit I”, the loan follows Passive Investing’s recent purchase of the 236-unit community. Executed in May, the 3-year agreement includes options for two single-year extensions.
Ware Shipman of JLL’s Capital Markets division served as lead broker for the deal.
“Nashville has long been one of the most dynamic rental housing markets in the country, thanks to a steadily rising 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 further our developing relationship with an innovative and accomplished partner in Passive Investing by supporting its success with Braxton Music City.”
The agreement for Braxton Music City was one of four loans, totaling approximately $169.7 million, issued via ‘ACRE Credit I’ in May alone. Other loans finalized during the month were issued in support of multifamily developments in Denver, Colorado; Fort Worth, Texas; and Fredericksburg, Virginia.
The loan also represents the second issued to Passive Investing since ACRE Credit I’s launch in August 2020, following a $15.3 million loan for a property in North Carolina.
To date, the fund has raised $509 million of equity and has committed to provide more than $2 billion of whole loans across 52 transactions to support the acquisition, lease-up, redevelopment and recapitalization of multifamily assets in growing secondary markets across the U.S.
“Demand for high-quality rental housing shows no signs of slowing across the country, particularly in smaller metro areas where new population is easily outpacing supply,” said Jacobs. “These dynamics have led more multifamily investors and developers partnering with ACRE, as we continue to develop our increasingly active and widely recognized lending vehicle in ‘ACRE Credit I’. We’re extremely proud of the platform’s success to date, and look forward to continuing to support our growing network of partners and the rental housing sector at large in the months and years ahead.”
Located at 2165 Nolesville Pike, Braxton Music City was built and delivered by Westplan Investors in early 2022. Since opening, the community has enjoyed significant lease-up momentum, as it is currently 40% percent occupied and 45% percent leased.
The development’s 236 luxury units feature a wide range of amenities, with in-unit features and finishes including stainless steel appliances, granite countertops, energy-efficient lighting, vinyl and hardwood flooring, full-sized washers and dryers, and large walk-in closets. Community perks include a 24-hour gym, resort-style pool with cabana lounge, dog park, pet washing spa, bicycle storage, sky lounge, coffee bar, coworking space, community fire pit, and a recording studio with resident-only access.
Braxton Music City is located just 4.5 miles south of downtown Nashville, and provides easy access to a number of entertainment options and other destinations, including the redevelopment of the May Hosiery and Nashville Warehouse Co. – a 150,000-square-foot creative office and outdoor music venue – as well as The Fairgrounds Nashville and Geodis Park, the home of Major League Soccer franchise Nashville Soccer Club.
About ACRE
ACRE is a vertically integrated private equity firm specializing in commercial real estate through active investments in both direct equity and debt capital markets as well as special situation opportunities. ACRE manages a global portfolio in excess of $3.1 billion concentrated in U.S. multifamily with holdings in the United Kingdom and Southeast Asia through separate verticals. ACRE has offices in Atlanta, New York, and Singapore.
Contacts
Media:
Wes Johnson
Antenna | Spaces
(302) 544-1234
wes.johnson@antennagroup.com