LIV Development paid $63.26 million for the Eastside Heights apartments. The Nashville Business Journal reports that’s about a million dollars less than the seller, Steadfast Cos. paid for the property in 2019.

The building, located near the East Bank, opened in 2017 and was co-developed by Southeast Ventures and Hardaway Construction. Eastside Heights stands five stories and offers 249 apartment units, 8,000 square feet of ground-level retail and a 360-space parking garage.

The transaction was equivalent to around $254,076 per unit.

LIV Development has developed more than 20,000 units, primarily in the southern region of the U.S. The firm currently owns two Nashville apartment complexes, Livano Nations and Livano Trinity, and sold another East Nashville apartment building, The Cleo, in 2018 for $66.98 million.

Cap rates in the net lease sector continued to rise in the third quarter of 2024, albeit slightly, net lease brokerage The Boulder Group reported. The overall rise was three basis points quarter-over-quarter, with the average cap rate coming in at 6.73% in Q3.

All property types saw an uptick in cap rates, according to the Q3 report from The Boulder Group. Office sector net lease properties experienced the largest increase, at eight bps, with industrial up five basis points. Retail edged up three bps in Q3.

The onset of rising cap rates coincided with the Federal Reserve’s series of increases to the federal funds rate. “Additionally, there is a stagnant supply of net lease properties on the market resulting from limited transaction activity from both private and institutional buyers,” said Boulder Group president Randy Blankstein.

Current sellers of net lease properties hope the recent 50-bp cut in the federal funds rate will increase transaction velocity and potentially improve pricing in their favor. However, most market participants remain cautious and don’t expect cap rates to compress near-term unless there are continued rate cuts.

The Trepp CMBS Delinquency rate inched up in February, rising five basis points overall to 4.71%. Year over year, the overall U.S. CMBS delinquency rate is up 159 bps.

In the closely watched office segment, delinquencies rose 33 bps in February to 6.63%. The month-over-month increase is roughly in line with the average 37-bp monthly gain for the sector over the past 12 months, according to Trepp.

The retail segment posted the largest decline of all property sectors for the month, dropping 24 bps to 6.03%. That said, retail CMBS still represents the second-highest delinquency rate, compared to 5.45% for lodging, 1.81% for multifamily and 0.43% for industrial.

If loans that are beyond their maturity date but current on interest were included, the delinquency rate would be 5.69%, up seven bps from January. The percentage of loans that are 30 days delinquent is 0.30%, up six bps for the month.

Trepp said the all-time high for the CMBS delinquency rate was 10.34%, registered in July 2012. The COVID-19 high was 10.32% in June 2020.