Chattanooga's City Green complex bought by investors

Chattanooga's City Green complex bought by investors

November 10th, 2012 by Mike Pare in Business Around the Region

Rendering of City Green at Northshore

Rendering of City Green at Northshore

A South Carolina investment firm has paid $31 million for a recently finished apartment complex in Chattanooga - likely one of the highest purchase prices for such a property ever in the city.

Chartwell Holdings bought City Green at NorthShore, a 282-unit complex at 1747 Dayton Blvd.

Tripp Moye, the company's acquisitions director, said Chattanooga is "a vibrant market with exciting things happening."

He cited the city's revitalized downtown as well as the opening of the Volkswagen auto assembly plant.

Moye said the acquisition is the company's first in Chattanooga but second recent purchase in East Tennessee.

In 2011, Chartwell of Charleston, S.C., bought Plantation Manor apartments in Knoxville for $9.15 million.

City Green at NorthShore, at the Signal Mountain Road exit off U.S. Highway 27, opened last year.

Built on nearly 17 acres, it has over 260,000 square feet of building space, according to the Hamilton County Assessor of Property Office.

Monthly rent ranged from about $650 to $1,200, according to newspaper archives last year.

The complex was built by Red Mountain Development of Birmingham, Ala.

The seller was Overlook Chattanooga LLC., Moye said.

He said Chartwell specializes in apartment investment and management.

Earlier this year, a Omaha, Neb., investment group bought a 240-unit Chattanooga complex for $15.2 million.

America First Real Group assembled a partnership that bought Standifer Place Apartment Homes near Interstate 75 and Bonny Oaks Drive.

A study earlier this year put Chattanooga's apartment market as one of the strongest in the Southeast.

David Wilson, primary analyst for Rock Apartment Advisors in Birmingham, said earlier that Chattanooga is outperforming a lot of apartment markets.

His company reported that of 53 apartment complexes surveyed in Hamilton County, 31 have a higher occupancy than a year ago and the average occupancy rate was 96.9 percent.