NASHVILLE, TN—The ears of multifamily investors may be perking up as Jones Lang LaSalle Capital Markets starts marketing a portfolio of four multifamily properties known as the Lehman Nashville Portfolio. The properties span more than 1.5 million square feet and offers 1,593 units.

“Because the portfolio includes properties of varying vintages, locations and return strategies, it offers investors a balanced approach to meeting investment criteria,” Vince Lefler, senior vice president at JLL, tells GlobeSt.com. The portfolio is located in Nashville’s southern and eastern submarkets including Brentwood, Hermitage, Antioch, and Nashville proper. The properties are being offered for sale as a package or individually.

“While a value-add investment strategy is ‘hot,’ some investors will recognize that a couple of the properties provide a significant cash-on-cash return from day one, allowing them to focus on upgrading properties with the highest potential rent increase,” says Lefler. “As a result, we expect offers from a broad spectrum of buyers: institutional groups, private equity, local investors and regional sponsors with institutional JV equity."

Lefler is marketing the portfolio along with JLL managing directors Derrick Bloom and David Gutting. Nearly half of the Lehman Nashville Portfolio has undergone interior renovations since 2008 and current ownership spent more than $1.1 million in physical plant capital expenditures during 2011. The multifamily portfolio is currently 95% occupied.

Lefler notes that Nashville has emerged in recent years as a leader in the Southeast multifamily market, and is ranked number three on Forbes’ ”Biggest Boom Towns” over the next decade list due to its strengthening economic growth. With the acquisition of the Lehman Nashville Portfolio, he says, potential multifamily investors have an opportunity to establish a presence in this high barrier-to-entry market and capitalize on the property’s significant upside potential and value-add efficiencies to significantly increase their rental rate.

“While the properties can be bid on as a portfolio or as individual assets, Lehman is likely to give preferential consideration for full portfolio offers,” Lefler says. “Aside from price, bidders will be evaluated on ability to close and specific closing terms. Information such as equity sources, lender relationships and recent track record all come into play as Lehman selects the buyer.”