Local entity gets $12.7M for The Park at Five Points after paying $1.6M in late 2010
Original post: https://www.nashvillepost.com/business/development/article/20996373/east-nashville-apartments-sell-for-800-return
authors William Williams
The Park at Five Points — an apartment complex located in South Inglewood — has sold for $12.7 million — a roughly 800 percent increase compared to the price for which it changed ownership hands in late 2010.
Nashville-based developer/investor Bruce McNeilage and business partner Rachel Franks were the sellers, with an unidentified California-based entity the buyer.
Russ Oldham and Brett Kingman, brokers with the Nashville office of CBRE, represented the sellers.
The Park at Five Points has an address of 1120 Litton Ave. and is located adjacent to Solo East, which McNeilage (pictured) and Franks developed via Harpeth Developments.
Via The Park at Five Points LLC, McNeilage and Franks acquired the property in December 2010 for $1.6 million, according to Metro property records.
McNeilage said the sale is significant in that The Park at Five Points represents one of East Nashville last remaining apartment complexes that is both well kept and offers reasonably priced units ($725 to $750 for a one bedroom and $825 to $850 for a two bedroom.
McNeilage said that in addition to the buyer, “multiple California entities” are willing to pay record prices for Nashville property. Many companies showed interest in the property added
As to the return on the investment, McNeilage said he has talked to multiple “seasoned real estate attorneys and real estate brokers” who noted “nothing like this, in terms of profit, has ever been recorded/ realized on a sale of a multifamily residential complex in Nashville.”
The Park at Five Points was opened in 1965 (known then as Litton Apartments), with its eight buildings offering a collective 162 units.
McNeilage said Franks was a “large part of the success of the deal.” He said the two made some basic improvements to the complex but declined to disclose the amount spent on that effort.
McNeilage said he will use the profits of the sale potentially for Solo North, a condo project he is billing as offering “workforce/attainable” housing and for which development will depend, in large part, on Metro assistance.
“The only way I will do Solo North is as a public/ private partnership with Metro,” he said. “This may or may not happen. However, Metro has $50 million to invest in affordable workforce housing and that has not been invested in the last two years since the funds were created by the city issuing general obligation bonds.”