NASHVILLE, TN—Capstone Apartment Partners has closed the $6.5 million sale of a hotel conversion development in the east Nashville suburb of Hermitage. The asset was formerly an Rodeway Inn and will be converted into premium studio apartment units. The asset is advantageously positioned is at the intersection of Interstate 40 and Old Hickory Boulevard, providing immediate access to a multitude of thoroughfares and major employers including Summit Medical Center and the Nashville’s bustling downtown business district.
Capstone’s Adam Klenk, Austin Heithcock, and Jordan Arand sold the asset on behalf of Jai Ganesha and procured the buyer; Adam Rosenberg & Aryn Spahr.
“We are very excited to be able to bring our team’s premium design intent and development experience to this prime location in Nashville and offer studio apartments at attainable rents to hard working Nashvillians,” said Adam Rosenberg, Developer of Hermitage Studios.
Hotel to studio apartment conversion projects are an emerging asset class that provide attractive housing options for renters in cities such as Nashville that have experienced tremendous rent growth over the last 12-24 months. In Nashville, the average apartment rental rate has increased dramatically, creating a strain for renters in search of affordable housing options.
Upon completion, the Hermitage hotel conversion will offer 108 studio apartment units at attractive market rents. The existing hotel building was developed in 1984 and features 32,400 rentable square feet and a swimming pool. The developers will begin renovations in coming weeks.