Pair of new downtown Chattanooga apartment projects planned

The former Loft Restaurant site at the corner of Manning St. and Cherokee Blvd. is slated to be reclaimed and used for a new apartment bulding.
The former Loft Restaurant site at the corner of Manning St. and Cherokee Blvd. is slated to be reclaimed and used for a new apartment bulding.

A pair of planned new apartment projects could bring more than 360 additional units to downtown Chattanooga as demand for rental housing in the central city continues to sizzle.

More than 2,000 apartments are planned, underway or recently completed in the downtown area, figures show.

photo North Shore location of proposed apartments.
photo Southside location of Proposed apartments, commercial space.

"We've been so underserved for years, the market is just catching up to us," said Kim White, who heads the nonprofit downtown redevelopment group River City Co.

In the two latest projects, the former Loft restaurant site on the North Shore is to hold 185 apartments in a $37 million development, while 179 units are scheduled for the Southside near Finley Stadium.

Scott Black, senior vice president of Bristol Development Group, said the Franklin, Tenn., developer is buying the Loft site along with six houses in back of the former eatery to assemble a parcel for a four-story apartment building.

"We really like Chattanooga," he said. "The North Shore is really exciting to us."

Black said plans call for one- and two-bedroom units at the corner of Cherokee Boulevard and Manning Street. Rents haven't been set yet, he said.

The site also is to hold a parking garage with 225 spaces, Black said.

Meanwhile, on the Southside, Chattanooga developer John Wise is eyeing construction of 179 apartments near Finley Stadium and his Southside Social bowling alley and entertainment complex.

Plans call for a four-level apartment building on Chestnut Street across from Finley and a three-story structure nearby facing West 20th Street, according to a zoning request submitted to the Chattanooga-Hamilton County Regional Planning Commission.

Also, the developer wants to have commercial space on South Broad Street behind the Chestnut properties. In addition, he's proposing to build a new private road on a railroad right of way between Broad and Chestnut at 20th Street.

Wise, perhaps the most prolific builder of apartments downtown over the past several years, said he thinks the pipeline may be getting full.

"The banks are getting a little nervous," he said, adding that he believes some of the proposed projects announced recently won't get built. "Construction costs have risen drastically."

Wise said his newest project, for which he's seeking tax incentives, is on the fringe of Southside apartment construction.

White said an updated market study shows there's still unmet demand for apartments, especially for student housing.

photo The former Loft Restaurant site at the corner of Manning St. and Cherokee Blvd. is slated to be reclaimed and used for a new apartment bulding.

"We've got a growing student population," she said. "Tech companies are coming here. People are staying here once they graduate. We've built a great downtown, and people want to be a part of it."

Both the Wise and Bristol developments are seeking zoning changes and are to go before the planning commission on Monday.

The projects are part of an array of new apartments on the drawing board or underway downtown, and all parts of the central city are benefiting.

On the North Shore, work has just started on a five-story, 84-unit apartment building at Cherokee Boulevard and Manufacturers Road by Vision Hospitality Group. Rents there could range from $900 to $1,600 a month, a Vision official has said.

In downtown's central business district, a developer recently unveiled plans for new apartments in the landmark First Tennessee Bank Building in a $14 million project. Nearly across Market Street, a 10-story tower, the tallest building slated for downtown in at least two decades, is to hold 125 apartments in the 700 block.

On the Southside, a Knoxville developer foresees a $15 million project with 139 apartments around South Broad and West 17th streets.

Also, Wise is building a four-story, 75,000-square-foot mixed-use building that will house commercial storefronts and 63 apartments at Market and Main streets. The developer said people should start moving in early next year.

Contact staff writer Mike Pare at mpare@timesfreepress.com or 423-757-6318.

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