The owner of the James Robertson Apartments building has added a second downtown complex to its portfolio.
Nashville-based Covenant Capital Group LLC paid $15.8 million for the 170-unit Metro Manor apartments at 500 Fifth Ave. N. That price equates to $92,705 for each unit.
Govan White, Covenant’s managing partner, said Metro Manor’s location roughly two blocks from the new First Tennessee Park baseball stadium at Sulphur Dell was a key appeal.
"We’re excited about this part of Nashville as it continues to improve," he said, citing views of the ballpark from the building, which is across from Municipal Auditorium.
Covenant, a real estate private equity firm, said it plans extensive upgrades to the apartment units and amenity areas, including the installation of granite countertops and new stainless steel appliances plus a new fitness center along with renovations to the rooftop pool and lounge area.
The acquisition is the second investment from Covenant’s second investment fund called Covenant Apartment Fund VIII, which targets value-added investments in apartment communities across the Southeast and Mid-Atlantic states.
Covenant said it obtained a new $11.8 million mortgage on Metro Manor, provided by locally based CapStar Bank.
The privately owned company manages more than $1.3 billion of assets and controls more than 15,500 apartment units. Its other local holdings include Riverview Grand and Views on the Cumberland apartments in West Nashville and Ventana on the Lake in Hendersonville.
Metro Manor LLC was the seller of Metro Manor, which local Brookside Properties Inc. will manage for Covenant.
Reach Getahn Ward at 615-726-5968 and on Twitter @getahn.