Residential Property Developments

Nashville investor pays $49M for newly-built apts in Altamonte Springs

The Nine 12 Gateway apartment community in Altamonte Springs was recently purchased for $41.9 million by a Nashville investment company.

Nicol Investment Co., an active investor in large, mixed-use developments around the country, paid $49.1 million last week for the newly-built Crescent Gateway apartment community in Altamonte Springs.

Rebranded as Nine 12 Gateway, the 249-unit complex at Inspiration Avenue and Gateway Drive was sold on Nov. 30, with the deed recorded by Seminole County on Tuesday.


The seller was a joint venture entity made up of a subsidiary of CNL Growth Properties of Orlando and an affiliate of Crescent Communities Inc. of Charlotte, N.C.

Nicol, using affiliate NIC Gateway Orlando LLC, financed $30 million of the purchase price through a mortgage with Wells Fargo Bank NA of Atlanta.


The buyer did not respond to requests for comment on Thursday.

CNL Growth Properties, in a December SEC filing, reported netting $10.4 million from the sale after repayment of roughly $28.3 million in debt, closing costs, reserves and distributions to Crescent. CNL, a non-traded real estate investment trust, financed Crescent Communities' development of the property.

Crescent built the class A apartments in 2014-15, which opened within the past few years. Third-party management company RAM Partners LLC of Atlanta was brought on last week.

Nicol Investment, led by president Mark E. Nicol, has offices in San Diego and Nashville. Nicol is also president of financial services firm Aspen Asset Management Inc.

This is believed to be Nicol's first multifamily asset in the Greater Orlando market.

In December 2014, Nicol Investment paid $54.3 million for Velocity in the Gulch, a 238-apartment community in the downtown Nashville development called The Gulch. According to an article in the Nashville Tennessean, Nicol bought the apartments with proceeds from selling assisted living facilities.

Nicol Investment also owns Bell Historic Franklin apartments in Franklin, Tennessee, and Bell Hillsboro Village apartments in Nashville.

In 2013, Nicol Investment paid $79.5 million for a portion of the first phase of The Banks, an 18-acre mixed use development between Cincinnati's two riverfront stadiums that includes 300 apartments that is being developed by Atlanta-based Carter & Associates.


Have a tip about Central Florida development? Contact me at Follow GrowthSpotter on Facebook, Twitter and LinkedIn.