Argosy Invests in Mission Mill Creek
On May 15, 2015, Argosy Real Estate Partners III, L.P. and its parallel Funds (“AREP III”) made a controlling investment in the acquisition of Mission Mill Creek, a 336 unit, 1985-vintage, garden-style apartment community in the Antioch submarket of Nashville, Tennessee. The property was acquired from a special servicer at a favorable cost basis below comparable trades in the market.
Mission Mill Creek was 88% occupied at closing (98% occupied excluding out-of-service units) and offers spacious floor plans as well as a unit mix appropriate to the market but suffers from a lack of capital investment over the past several years. The business plan is to complete capital improvements to address interior and exterior deficiencies that have caused the property to underperform its competition.
Antioch is a mature suburban submarket located approximately twelve miles southeast of downtown Nashville. The location offers easy access to a variety of mid-level and service-type employment generators which are in line with the Property’s targeted renter demographic. The submarket is largely built out with no competitive new supply in the pipeline and a vacancy rate of 3% as of Q1 2015.
Mission Mill Creek has been acquired in partnership with Goff Capital Partners, a real estate-focused private equity firm headquartered in Dallas with additional offices in Denver and Stamford. The firm has broad investment and capital markets experience and is led by John C. Goff, the founder and CEO of Crescent Real Estate Equities. Argosy has previously partnered with Goff on the Clearwater Multifamily Portfolio in AREP III, consisting of two multifamily assets in the Tampa MSA.