The apartment and townhome community is located in the Bellevue area of Nashville in Davidson County. It was built in the mid-1980s. Madison Apartment Group will manage the property and plans to spend approximately $3.5 million on various renovations and upgrades over the next year, including a new roof, new siding and a remodel of the clubhouse.

Madison Apartment Group president Joseph Mullen tells GlobeSt.com the property has a physical acquisition of 92%, however; because of market concessions, the economic occupancy is closer to 70%. But thanks to tax-exempt bond financing, the capitalization rate on the investment is still 7.25%. Mullen says Madison acquired $23 million worth of bonds at a fixed rate with a Freddie Mac forward credit enhancement and, in six months, will re-issue them as low-floater tax exempt bonds.

Ridgelake is the second acquisition in Tennessee for Madison Apartment Group; the other property is Rivergate Meadows, 200 units in Goodlettsville, a northern suburb of Nashville that the company acquired two-and-a-half years ago. Mullen says the company typically likes to acquire portfolios, but the size of Ridgelake "is really like buying two properties. Madison Apartment Group has a portfolio of approximately 20,000 units in 74 apartment complexes located throughout the United States.