Argosy Real Estate Partners Exits Verse on Bell
On November 19, 2018, Argosy Real Estate Partners III, L.P. and its parallel funds (“AREP III” or the “Fund”) exited their investment in Verse on Bell, a 336-unit, 1985-vintage, garden-style apartment community in the Antioch submarket of Nashville, Tennessee. The property was sold to American Landmark, a national real estate investment group.
In May 2015, AREP III acquired the property with Crescent Real Estate in an off-market transaction at a favorable cost basis. Prior to the acquisition, the property suffered from a lack of capital investment, deferred maintenance, out-of-service units and mismanagement, which resulted in below market rents and declining financial performance. Moreover, the TIC (tenants-in-common) owner did not have access to the capital required to stabilize the property’s financial performance.
During the hold period, the Fund executed a business plan which included completion of a significant capital improvement plan, community rebranding and market repositioning. The capital improvement plan included the renovation of all units, redesign and renovation of the clubhouse leasing office and business center, addition of a fitness facility, and extensive maintenance improvements including siding repairs, exterior painting, HVAC replacements, roof replacements, and landscaping enhancements. With the capital improvements and professionalized management, occupancy was stabilized and rents were increased significantly at the property, resulting in a significant increase in the property’s net operating income.