Security Properties, which paid $53.7 million for a pair of Nashville, Tenn., apartment properties, invested in them in a venture with Loma Linda University's endowment.
The venture paid $34.4 million, or $247,482/unit, for the 139-unit Opus 29 at 301 29th Ave. North, and $19.33 million, or 224,767/unit, for the 86-unit Note 16 at 1226 16th Ave. South.
The properties were purchased from their developer, Stonehenge Real Estate Group of Nashville. Loma Linda, a southern California university with a focus on the health sciences, also had invested in their development through its $440 million endowment.
The Security Properties/Loma Linda venture funded its purchase in part with a $32.2 million mortgage with a 10-year term from Guardian Life Insurance Co. of America.
Opus 29 is in Nashville's West End neighborhood, two blocks west of Vanderbilt University and Medical Center. It is 97 percent occupied, with monthly rents from $1,330 to $2,523/unit. The property includes a swimming pool, fitness and business centers and a coffee bar.
The Note 16 property is in the city's Music Row area, near the east side of the Vanderbilt campus. It is 95 percent occupied, with monthly rents from $1,220 to $2,745/unit. The property has a courtyard and grilling area, business and fitness centers.
Security Properties, a Seattle developer, owns interests in 108 assets with nearly 16,000 multifamily housing units. Most of its holdings are in the Seattle and Portland, Ore., areas. It's targeting Nashville because of its appeal to millennials and to the city's reliance on the education and healthcare sectors, which historically have been relatively recession-resistant.
The Loma Linda endowment fund also owns apartment properties in Peoria, Ariz.; San Antonio, Tex.; and Richmond, Tex. Last month, a venture of Security Properties, Loma Linda University and Sunroad Enterprises acquired an apartment complex in Reno, Nev.
