Origin Investments and TWO Capital Partners Align Expertise for $84.8 Million Build For Rent
(BFR) Ground-Up Development Community in Nashville
CHICAGO and ATLANTA (March 14, 2023)—Origin Investments, a leading private equity real estate fund manager, and TWO Capital Partners, an Atlanta-based residential developer and investment firm, are combining specialized areas of expertise in the multifamily sector to develop a new build-for-rent (BFR) community within an opportunity zone in the Goodlettsville submarket of Nashville.
“The partnership between TWO Capital Partners and Origin Investments is an exciting venture because it leverages the individual strengths and expertise of each company, in build for rent and Opportunity Zone development, while combining it with the shared vision and corporate cultures of the two organizations,” said Ralph Wilson, co-founder of TWO Capital Partners. “We’re excited to advance this partnership further with projects like AVA Madison.”
The joint venture has begun the development and construction of AVA Madison, 13 miles north of downtown Nashville, on a 50-acre site at 235 Liberty Lane. The $84.8 million project will feature 199 rental units comprising a mix of 93 two-, three- and four-bedroom townhomes and 106 three- and four-bedroom single-family homes. The units will average 1,777 square feet of space.
Given the relative newness of BFR properties across the country, AVA Madison will deliver a unique, market-setting product in the Nashville MSA. At the present time there is a limited supply of BFR townhomes and single-family rental homes under a single ownership entity, existing or under development.
Each townhome and single-family home within AVA Madison will mirror other developments in the AVA brand established by TWO Capital Partners and will be equipped with a state-of-the-art technology package as well as market-leading finishes, meeting or exceeding the finishes in any new projects in the area, and private backyards. Townhome units will feature one- or two-car garage stalls. The single- family homes will each contain a two-car garage. Common-area amenities will include a resort-style pool and pool deck, fitness and co-working facilities, and lawn games.
“When completed, AVA Madison will provide a great opportunity for young families, millennials and Gen Z individuals who either cannot afford to buy a home or would prefer to avoid the maintenance issues associated with homeownership,” said Kyle Verhasselt, Vice President of Acquisitions, Origin Investments. “That’s a market trend that was already present and is further heightened by recent increases in interest rates, which have made it more difficult for some first-time home buyers.”
AVA Madison will be developed on an approximately 50-acre parcel at a convenient location with tremendous accessibility. It is located less than one mile from the Vietnam Veterans Boulevard exit on I-65 that provides easy access, within approximately 20 minutes, to downtown Nashville and the myriad employment opportunities existing and being created there. Within a mile of the development site is the Dollar General headquarters, where 2,700 people are employed. Several other significant employers are located along I-65 including a Tyson Foods production facility that is the largest in North America.
Additional benefits of the AVA Madison site include its “in the path of progress” location and the outward growth being seen in the area because of the lower cost basis of the Madison and Goodlettsville areas, coupled with easy access to downtown and surrounding areas. For example, the area is next to Hendersonville, a submarket that is well known for its excellent schools and upscale homes along the Cumberland River. Less than a mile from the AVA Madison development is a concentration of national retailers including a Target, Walmart SuperCenter, RiverGate Mall and Shoppes at Rivergate.
TWO Capital Partners has eight total AVA build-for-rent communities representing 1,700 units currently under development, including projects in Charlotte, Atlanta, Greenville and Savannah.
Further, with AVA Gainesville, AVA Madison and AVA Matthews, Origin is now in varying stages of the development process with six BFR communities—in Austin, Atlanta and Jacksonville—totaling almost 1,300 units and a construction value of more than $435 million.
About Origin Investments
Origin Investments is a private real estate manager that provides best-in-class real estate solutions for individual investors, family offices and advisors to build and preserve wealth. They build, buy and finance multifamily real estate projects in fast-growing markets throughout the U.S. Since its founding in 2007, Origin has executed more than $2.5 billion in real estate transactions and its principals have invested more than $60 million alongside investors. Origin prides itself on offering unparalleled service to investors and its performance; they are in the top decile of the best-performing global private real estate fund managers ranked by Preqin, an independent provider of data on alternative investments. Origin is currently accepting new investors for its IncomePlus and Multifamily Credit Funds, which seek to provide tax efficiency, enhance portfolio yield, maximize growth and minimize portfolio volatility. To learn more, visit www.origininvestments.com.