ARLINGTON, Va.--(BUSINESS WIRE)--EJF Capital LLC (“EJF”) and Chartwell Residential (“Chartwell”) today announced that they have formed a joint venture to invest $80 million in a two-phase, multifamily development with approximately 750 units in Nashville, TN. The two communities will be located on the former Watkins College campus. The 13.6-acre project is in an area certified as a “Qualified Opportunity Zone” under the Tax Cuts and Jobs Act of 2017 (“TCJA”), which offers investors tax benefits to invest into Opportunity Zones with the aim of spurring economic growth in lower income areas.
The first phase, which includes approximately 375 multifamily units in a five-story structure with an above-grade parking garage is slated to be under construction in early 2022 with delivery in early 2024. The second building will break ground thereafter and contain approximately 375 multifamily units. The site is adjacent to Amulet Lake, a 40-acre lake just north of downtown Nashville.
Downtown Nashville’s Allure
“Chartwell Residential already has put its mark on Nashville with its ability to target attractive investment opportunities,” said EJF Co-CEO Neal Wilson. “We are excited to partner with a firm which not only has a deep history in the market but is a market leader in hospitality and multifamily apartments. Nashville is a robust market that is rich with possibilities.”
Chartwell’s principals have developed over $2 billion in projects with approximately $700 million of commercial, residential, mixed-use and hotel projects under development. In Nashville, it has 21 apartment communities completed or under development and 12 hotels owned and operating or under management and three under construction. Chartwell employs approximately 1,200 in greater Nashville and is the second largest hotel owner and operator in the region.
“We are looking forward to partnering with EJF as we expand our presence in Nashville,” said Robert G. Schaedle, managing partner of Chartwell Residential, who has 35 years of experience. “We will be offering our residents the ability to be close to the bustling city’s amenities, while providing residences with waterfront views in an urban setting.”
The Watkins College site is one of the last remaining viable sites in the 850-acre Metrocenter submarket, claiming its place as a high-profile marquee location in the submarket. Metrocenter became Nashville’s first master-planned mixed-use business community and then recently transitioned to a more residential neighborhood with the growth of the urban residential market. Residents can find an affordable price point while gaining easy access to the city’s urban amenities.
There is more than 17 million square feet of office space within a 10-minute drive of the submarket, including the forthcoming Amazon and Oracle urban campuses, with 2.5 million square feet under construction and another 3.5 million square feet proposed. Employers such as Postmates, Cigna, Aegis Sciences Corp., and other finance, healthcare and insurance jobs provide work for more than 15,000 employees.
“Our project will offer the influx of Nashville residents an affordable price point as they seek to take advantage of the amenities of urban life in a robust city,” said Asheel Shah, EJF Senior Managing Director and Head of Real Estate Development. “Nashville is booming and we want to be part of the phenomenal growth.”
Nashville, the capital of Tennessee, is the most populous city in the state with more than 668,000 residents, an increase of more than 67,000 during the past 10 years. The metropolitan area, with more than 1.9 million residents, is one of the 10 fastest growing large metropolitan areas in the United States. The metropolitan area boasts a relatively low cost-of-living as well as a vibrant labor market. It is the home of several universities, most notably Vanderbilt University, Belmont University, and Tennessee State University. In addition, it is the “Music City,” a nickname that dates back to the 1920s when early radio was broadcast from the Grand Ole Opry.
About EJF Capital
EJF Capital LLC is a global alternative asset management firm headquartered outside of Washington, D.C. As of March 31, 2021, EJF manages approximately $6.0 billion across a diverse group of alternative asset strategies. The firm was founded in 2005 by Manny Friedman and Neal Wilson. Since inception, EJF has focused on regulatory event-driven investment themes including its strategy to invest in Opportunity Zones.
EJF formed the EJF OpZone Fund II LP (the “Fund”) to take advantage of certain benefits provided by the TCJA. Benefits to U.S. taxable investors include the ability for investors to (1) defer the recognition of recent capital gains for federal income tax purposes until 2026 (treatment of capital gains varies by state), (2) reduce the amount of capital gains recognized in 2026 by 10% (for investors investing by 2021), and (3) eliminate any federal capital gains tax generated from investments in the Fund (for investors in the Fund at least ten years). EJF’s first OpZone fund holds five completed projects including: a multifamily apartment complex in Washington, D.C., Jacksonville, FL, and Vancouver, WA; one hotel development in Oakland, CA and two industrial buildings in a multi-phase industrial park in Hardeeville, SC (near Savannah, GA MSA). In total these projects represent over $600 million in total estimated project costs with $219 million of equity being invested by EJF OpZone Fund I LP. If you would like more information on the Fund, please visit http://ejfopzone.com or contact EJF Investor Relations at email@example.com.
About Chartwell Residential
Chartwell Residential specializes in the development, construction, and management of high-quality residential development projects. Its mission is to deliver sustained value by selective land acquisition in targeted high-growth markets and the development, construction, and operation of high-quality residential projects that adheres to the highest standards of quality and practice. Chartwell Residential’s in-house expertise and fully integrated structure provide our team with superior control over costs and timing throughout all stages of the development process. Over the past 35 years, the principals of Chartwell have developed $2 billion in projects with an additional $700 million currently in development, including commercial, residential, mixed-use and hotel projects.