Louisville Business Journal
Jul 16, 2014, 12:28pm EDT Updated Jul 16, 2014, 2:29pm EDT
INDUSTRIES & TAGS
A Nashville, Tenn.-based commercial real estate investment and development firm has purchased the Post Oak Apartments off New La Grange Road.
Elmington Capital Group purchased the 126-unit complex in the East End on July 11 for $8 million.
The seller was Post Oak JV LLC, according to the Jefferson County Property Valuation Administrators website. Post Oak JV LLC is a subsidiary of Florida-based Trade Street Residential Inc.
The purchase pushes the total units in Louisville managed by Elmington Property Management, which are also owned by its parent company, Elmington Capital Group, to nearly 900 units, said John Grantham, analyst with Elmington Capital Group.
The company also manages Fountain Square, Green Meadows, Hikes Lane, Liverpool 1 and 2, and Hampton Place Apartments, according to a news release from the property management company.
The units in Post Oak range from 750 to 1,300 square feet, according to the release. Grantham said no significant rent increase is expected with the transition in ownership, but rent growth is projected to increase at 2 percent on average year to year.
Plans for the complex include a $350,000 estimated renovation that began under the previous ownership, Grantham said.
Grantham said most of the interiors of the units have been renovated, and Elmington will have about a dozen left to renovate. In addition, new roofs, new doors and new windows are planned for the buildings on the property and the exteriors of the buildings will receive a "facelift," he said.
The renovations are expected to be complete in about nine to 12 months, Grantham said.
Elmington Capital continues to look to Louisville as a market for expansion, partially because of the high demand in Nashville.
"We're seeing a huge influx of institutional capital ... (and) in Nashville, we're being out-priced by institutional capital coming from New York, Los Angeles (and) Dallas," Grantham said.
New York-based Enterprise Community Investment was Elmington Captial's equity partner in the deal. The debt financing was provided through Scott Brady and K.O. Kennedy of CBRE Capital Markets in Nashville, according to the release.
Braden Lammers covers these beats: Financial services, residential real estate, law, property and casualty insurance, construction, unions, engineers, architects and agriculture