NASHVILLE, TN—Capstone Apartment Partners has closed the $7.5 million sale of a hotel conversion development in the Cumberland Heights neighborhood of Nashville. The asset was formerly a Days Inn and will be converted into premium studio apartment units. The asset is advantageously located off W. Trinity Lane and Brick Church Pike, providing immediate access to a multitude of thoroughfares and major employers including Oracle’s future River North campus and Nashville’s bustling downtown business district.
Capstone’s Adam Klenk, Jordan Arand, and Austin Heithcock sold the asset on behalf of Shreya Investment LLC and procured the buyer, BAMI LLC.
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 Brick Church Pike hotel conversion will offer 109 studio apartment units at attractive market rents. The existing hotel is an exterior corridor building that was developed in 1990 and features a swimming pool. The developers plan to begin renovations in the coming weeks.