An Omaha, Neb.,-based investment group has purchased one of Chattanooga's biggest apartment complexes for $25.3 million.
Standifer Place Apartment Homes, the 240-unit complex on Jenkins Road that sold 11 years ago for $15.2 million, was acquired this week by a real estate partnership assembled by America First Real Group of Omaha. The buyers already own 130 real estate projects with more than 30,000 residential units in 36 states and were attracted to the Chattanooga market by its above-average job growth, officials said Friday.
"The job creation occurring in Chattanooga right now is extraordinary, and this property was perfectly located to take advantage of that growth," said Russ Oldham, a vice president for the Nashville firm of CBRE which marketed the apartments.
Built in 1998, Standifer Place is located next to the corporate headquarters of U.S. Xpress only a mile off of Interstate 75 and Bonny Oaks Drive and a mile from Hamilton Place mall. The complex includes one-, two- and three-bedroom apartments built around a clubhouse, swimming pool, tennis court, playground and pet park.
The complex is 95 percent leased and its sale reflects the growing demand for rental housing.
"The vacancy rates of apartment complexes are low, rents have moved up and interest rates for borrowers are at historic lows," said Tom Frye, managing partner for CBRE. "It's kind of the perfect storm right now and that is helping push up prices for rental properties."