RangeWater Turns Environmentally-Friendly “Fractured Condo” into Award-Winning, Financially-Successful Apartments
Investment Information: Acquisition of intown fractured condominium, rental conversion and subsequent sale
Overview: RangeWater Real Estate Group acquired Velocity in the Gulch, a fractured condominium development in Nashville, Tennessee, in 2011. With only 42 of the 264 units sold, a bank consortium had foreclosed on the construction loan. But it had many things RangeWater looks for: a walkable neighborhood in a mixed-use, intown, environmentally-friendly redevelopment called The Gulch, which was the South's first LEED-certified neighborhood. It was located near employers, universities and entertainment options and had exceptional luxury amenities appealing to young people.
Strategy: Acquire the foreclosed units, convert them to apartments, revitalize the community and create an exceptional investment opportunity.
The Work: The firm acquired the remaining 222 unsold units in bulk from the banks. Converting them to apartments required sensitive negotiations with multiple financial institutions, the master developer, two condominium associations, government entities and others.
Results: The community was fully-leased in only six months, half the projected timeframe, at higher-than expected rents. One lifestyle publication named it Nashville’s best new rental community. RangeWater sold the property at core pricing in 18 months to a national real estate investment fund.