One of the largest muti-family management companies in the United States has purchased the Northtowne Village apartment complex in Hixson this week for $14.25 million.
Pinnacle, a 36-year-old, privately held real estate investment and management firm based in Addison, Tex., bought the Gadd Road apartment complex last week for $14.25 million.
Northtowne Village includes 180 apartment homes. The one-, two- and three-bedroom apartments rent from $675 up to about $1,300 per month, according to apartment officials. The complex includes a swimming pool, fitness center, community center and playground on nearly 13 acres off of Gadd Road near Highway 153.
The original part of the complex was built in 1986. An investment group know as DR Northtowne Villlage LLC bought the apartments in 2007 for nearly $11.5 million and sold the complex on Monday to a partnership known as Strata Hixson LLC for $14.25 million.
Pinnacle, which entered the Chattanooga market for the first time to manage Northtowne Village, has a portfolio of more than 165,000 units and employs 4,000 workers across the United States to maintain and market its properties.
The sale of the Hixson complex is one of a half dozen major apartment complexes which have changed owners in Hamilton County over the past six weeks. Collectively, the apartment sales have totaled more than $83 million and reflect the growing investor interest in both multi-family projects in Chattanooga.
Earlier this month, the Elmington Capital Group LLC in Nashville acquired the 280-unit Mountain Brook Apartments along Mountain Creek Road for $18.5 million - $4 million more than what the previous owners paid to buy the complex just two years ago. Also this month, The Chalet at Northshore, 4103 Dayton Blvd., and the Cove at Northshore, 3001 Dayton Blvd., were sold to another Nashville firm, Aerial Development, for nearly $8.7 million, according to property filings with the Hamilton County Assessor's Office.
Last month, the biggest apartment sale yet in Hamilton County - the $41.8 million sale of the 312-unit Legends at White Oak in Collegedale - was sold to Olympus Property, a Fort Worth, Texas,-based investment firm.
"There is a tremendous interest right now in multi-family housing developments by many investors and Chattanooga is seen as a growing and relatively stable market," said Henry Glascock, a property appraiser and auctioneer in Chattanooga.