Acquisition of intown fractured condominium, rental conversion and subsequent sale
RangeWater acquired Velocity in the Gulch, a fractured condominium development in Nashville, TN, in 2011. With only 42 of the 264 units sold, a bank consortium had foreclosed on the construction loan. It had many things RangeWater looks for: walkability in a mixed-use and in-town environmentally-friendly redevelopment; a location near employers, universities and entertainment; and exceptional luxury amenities.
Acquire the foreclosed units, convert them to apartments, revitalize the community and create an exceptional investment opportunity.
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.
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.