Freeman Webb Co., a Nashville, Tennessee-based real estate investment and property management firm, ended 2021 with nearly $250 million in transactions through dispositions, acquisitions, and refinancing strategies. A large portion of the activity was completed during the fourth quarter.
One notable transaction for the firm was the sale of 1705 Hayes Street in Nashville, a 0.5-acre parcel of land that Freeman Webb acquired 30 years ago for $180,000 and sold for $5.625 million. This long-term hold garnered more than a 30 times equity multiple for investors. The firm also sold the newly renovated Innovation Flats Community in Huntsville, Alabama, after only 18 months of ownership. It generated more than a 100% IRR and a 3.8 times equity multiple for investors.
Its most recent sales included the 280-unit Burning Tree Apartments in Hermitage, Tennessee, for $38.2 million at the end of December and the 102-unit Patrician Terrace in Jackson, Tennessee, for $4.9 million. Earlier in the fourth quarter, Dupont Avenue Apartments, which the firm has held since 2000, sold for $13 million.
“It doesn’t matter if we hold a property for 30 years or for 18 months, we are committed to finding the best opportunities to maximize return for our investors and the best strategies that can increase the value of the properties we own or manage,” said executive vice president Bob Freeman. “We always transform our properties to benefit the residents, the community, and our clients.”
Freeman Webb added 2,600 units in 19 communities to its $2.5 billion assets under management with a blend of acquisitions and third-party management properties in 2021. One of the firm’s most recent acquisitions was The Emerson Apartments in Bowling Green, Kentucky. The firm is in the process of transforming the community from student housing to upscale apartment-style living as well as adding 100 units. In the fourth quarter, the firm also acquired the 152-unit Cross Creek Apartments in Knoxville, Tennessee.
“We were glad to take some chips off the table given current market pricing and sell six properties to generate substantial returns for our clients. We regularly assess each property to determine the best investment strategy,” said vice president of acquisitions Matt Olson. “In addition to the dispositions, we refinanced six properties for a total of $71 million to take advantage of the current low interest rates. Our acquisition activity continues to be opportunistic, and we were able to pick up two great properties with unique investment strategies this year.”
