Drapac Capital Partners, an Australian-based real estate investment firm, today announces the sale of The Parks at Cane Ridge, a 238-lot residential land tract located in Antioch, to home builder Meritage Homes for $5.35 million. Meritage Homes anticipates The Parks at Cane Ridge will open for sales in Spring 2024, with 237 single family lots. Each single-family home will include Meritage’s signature energy efficiency features and M.Connected Home™ Automation Suite. The preliminary address is 0 Came Ridge Road
Drapac purchased the property out of foreclosure in February 2015 for $500,000 from Pinnacle Financial Partners. The sale of The Parks at Cane Ridge to Meritage Homes reflects a 970% appreciation value on the initial investment. The Parks at Cane Ridge is the latest Nashville area property to be sold by Drapac, with the firm previously selling a parcel of land in Lebanon, TN for $9.3 million to LGI Homes. Drapac continues to own over 700 acres of land in Nashville, including a remaining 41 acres at the The Parks at Cane Ridge site.
“There is an acute supply deficiency in high-growth cities like Nashville. Early on, we identified Nashville as a mispriced market that would offer outsized returns. We had a feeling it would go from 0-100 very quickly and the onset of the pandemic turbo-charged its rise. Nashville’s substantial momentum and the pent-up demand for housing in the last two years confirms that we were on the right track when we made the decision to enter the region in 2014. We understood where this market was headed and made the decisions that would lead to the profit margins we are currently experiencing. We anticipated the strong in-migration the market saw over the last 3 years and expect this growth to positively impact development pipelines in the near-term.”
— Sebastian Drapac, COO at Drapac
“With its premiere location, we are confident that this new community will meet the market’s growing demand for affordable, energy-efficient homes. We look forward to building on our momentum in the greater Nashville area.”
— Dave Bulloch, division president for Meritage Homes’ Nashville Division
According to the release, the Nashville metro area is seeing significant demand in the residential sector, despite a lack of viable residential land supply. With a larger share of Nashville city residents moving to metro area suburbs, the Tennessee State Data Center reports that net domestic migration climbed 25% in the five largest surrounding counties in the Middle Tennessee region in 2021, with four out of five counties experiencing increases over 2020 levels, leading to heightened demand for housing in the metro region.
First entering the U.S. real estate market in the years following the Great Recession, Drapac acquired undervalued, distressed land assets where the firm predicted a forthcoming rebound. The firm anticipated strong growth in Southeast markets like Nashville and maximized investment potential by evaluating various economic fundamentals, including employment, population growth, demographics and favorable development policies.
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