Admiral Capital Real Estate Fund II, LP (“ACRE II”), an affiliate of Admiral Capital Group (“Admiral”), and Security Properties (“SP”) purchased Cambridge at Hickory Hollow, a 360-unit multifamily property located in Nashville, Tenn.
Cambridge at Hickory Hollow is a garden-style apartment community that was constructed in 1997 and is located 15 miles southeast of downtown Nashville in Antioch, one of Nashville’s fastest growing submarkets.
Nashville has roughly 1.9 million residents, and approximately 100 people move to the MSA daily. Rapid job growth, evidenced by Nashville ranking in the top 10 metros in job growth in the country for six straight years, is boosting apartment demand. “Nashville’s impressive job growth and strong multifamily fundamentals make it an attractive investment target for Admiral,” said Admiral co-founder Dan Bassichis. “This opportunity continues our defensive focus on identifying well located assets that provide a value alternative to the newer, higher end product in the fastest growing cities.”
The property is within a 25-minute drive of more than 610,000 jobs. Antioch’s proximity to major employment centers has been a major draw to renters, and as a result, the population has grown by 37,000 people (over 70 percent) since 2000. Over the past five years, Antioch has attracted several blue-chip employers, including Bridgestone, Asurion, CHS, HCA Health, SmileDirectClub and LKQ.
Tad Johnson, director of acquisitions at Security Properties, said, “The venture acquired this property because it was an attractive opportunity to apply our proven value-add expertise in a 1990’s vintage asset located in a high-growth market. We are excited about the growing employment drivers and investment that is occurring in Antioch and firmly believe in the long-term viability of the submarket, and greater Nashville.”
“The investment in Cambridge at Hickory Hollow will continue our longstanding, successful relationship with Security Properties,” said James Maher, principal at Admiral. “We have previously invested with them in this market and hope to continue to build our presence in Nashville and other high growth cities throughout the country.”
Security Properties now owns 121 assets totaling approximately 24,000 units across its portfolio. This includes over 1,500 units in the Nashville marketplace. The property will be managed by Security Properties affiliate Security Properties Residential.
The acquisition represents Admiral’s second investment in Nashville and brings its units currently under management to 5,500 nationwide.
About Admiral Capital Group
Admiral Capital Group (“Admiral”) is an investment management firm formed in 2008 to pursue real estate and private equity opportunities. ACRE II is Admiral’s second value-add real estate investment fund focused primarily on multifamily and office properties in top 25 MSAs across the country. Since inception, Admiral has acquired $1.8 billion of assets across the multifamily, office, retail and hospitality sectors. Admiral’s mission is to build trusted, longstanding relationships that help create long-term value for its investors and the communities where it invests. Admiral utilizes an extensive network to source opportunities that benefit from flexible capital, creative problem solving and investment and social impact expertise. The founders of Admiral have pledged 10 percent of their profits to philanthropic causes with a primary focus on supporting education and lower-income communities.
About Security Properties
Security Properties is a national real estate investment, development, and operating company headquartered in Seattle, Washington. For more than 48 years, Security Properties has provided quality housing to its residents as well as excellent financial performance for its investors. Since its founding, Security Properties has acquired or developed over 83,000 residential units at a cost of over $5.7 billion. Security Properties maintains a focused multifamily strategy supported by integrated teams of professional acquisition, development, construction, investment, and property management specialists.
About Security Properties Residential
Security Properties Residential is the affiliated property management firm of Security Properties, created to increase the value of its real estate holdings by more closely managing its assets. Operating throughout the Western U.S., Security Properties Residential is committed to delivering exceptional service to its apartment communities and residents. Services include property, construction and compliance management services that create positive living environments for residents and build value for clients.
