Investor nears deal for Jefferson Manor apartments

July 15, 2015

Original Story: http://www.tennessean.com/story/money/2015/07/14/investor-nears-deal-jefferson-manor-apartments/30162253/

A local investor has the 22-unit Jefferson Manor apartments in North Nashville under contract for $925,000, a pending sale owner Bruce McNeilage said reflects his continuing repositioning of capital.

McNeilage, who through Harpeth Development is pursuing the 130-unit Solo East condos project in East Nashville, expects to complete selling the apartment complex near 28th Avenue North and Jefferson Street by the fall.

Four months ago, McNeilage also sold a portfolio of 42 Nashville-area single-family rental homes to Agora Hills, Calif.-based American Homes 4 Rent LLC, one of the biggest players in the local rental home market.

With the $9.63 million in proceeds from that sale, McNeilage said he’s seeking to buy more rental homes in Nashville and Atlanta.

He’s planning soon to make an offer for a small portfolio of Nashville-area rental homes owned by Oakland, Calif.-based Starwood Waypoint Residential Trust. Last week, McNeilage’s Kinloch Partners LLC made an offer on a small portfolio in Atlanta owned by Colony American Homes, a division of Colony Capital Inc.

BWM Headshot Overall, McNeilage said he plans to invest $10 million south of Interstate 20 in Atlanta and another $5 million in greater Nashville. He saw recent plans by private equity firm Blackstone Group to sell a portfolio of 1,300 rental houses in Atlanta as a buying opportunity for smaller players such as Kinloch Partners.

“I took a contrarian approach as a buying signal to aggressively start buying houses,” McNeilage said. “What wasn’t working for them works from us because of our low overhead and our process of selecting tenants.”

McNeilage and partners have owned Jefferson Manor for seven years. They bought the apartments where monthly rents average $600 from adjacent Jefferson Street Missionary Baptist Church.

Last month, McNeilage and partners turned down a $7.3 million offer for The Park at Five Points apartments in East Nashville. Four and a half years ago, the partners paid $1.6 million for those apartments next to the planned Solo East condos site.

“Our commitment is to be an owner of properties in East Nashville for a very long time,” McNeilage said.

Reach Getahn Ward at 615-726-5968 and on Twitter @getahn.

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