I closed a 19 unit BTR in Nashville

[Adam Ulery]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Lebanon.

Purchase price: $3,800,000
Cash invested: $1,285,000

Dreamstone Investments, with offices in Tampa and Atlanta, and apartment communities in Florida, Georgia and Nashville, has recently added a new investment type to its strategic portfolio. Build-to-Rent (BTR) is a new trend that renters and investors, alike, find attractive. In December of 2020, Dreamstone Investments and our partners, closed on a 19 unit townhouse-style rental community in Wilson County, a suburb of Nashville, TN. We see this community serving young families in metro Nashville, who want more privacy and more of a “house-feeling” than an apartment. It is perfect for those who aren’t ready to own a place, but want a place that they would be happy to own. This is brand new construction and we will hold this property for at least 5-7 years, at which time we will either sell or cash out.

What made you interested in investing in this type of deal?

Taking advantage of economies of scale, cheap agency debt, and competitive building costs to buy a new product that will have low-to-no maintenance costs for several years thanks to builder warranties and new construction.
Rental demand is strong, with millennials reaching prime housing age, while strapped with student loan debt.
Mulitple exit strategies make exiting the deal in 5-7 years flexible.

How did you finance this deal?

Syndication and agency debt.

[Luka Milicevic]

@Adam Ulery

Thanks for sharing. Lebanon is doing very well right now as Nashville expands it's getting a lot of residents move out there due to the affordability factor.

The build to rent strategy is something that I'm going to very much ramp up in 2021. I think it's going to work well over the next few years as prices are where they are now.