Hardwick Hogshead building at 600 Georgia Ave.A local investment firm has acquired two of Chattanooga’s oldest downtown apartment complexes for $8.5 million.
CCB Real Estate Partners, a limited partnership formed by Robert T. Johnston of the Johnston Southern Co., bought the 20-unit Robinson Apartments, originally built in 1910, and the nearby six-story Hardwick Hogshead Apartments, erected in 1912. The properties are located in the Fountain Square Historic District just across Georgia Avenue from the Hamilton County Courthouse.
Fred Robinson, a principal in Robinson Management LLC and one of the former owners of the apartments, said selling the downtown buildings came with mixed emotions.
“We have not been the traditional landlord, in that some of the property has been in this family since ice was delivered by horse and carriage,” Robinson said. “Long term ownership seems to be a rarity in investment real estate today. Collectively, we have leased to several generations of Chattanoogans, and our experience has been overwhelmingly positive.”
But the new owners of the historic buildings are based at the Johnston Southern and Tucker Foundation offices in Ooltewah. Johnston, the buyer of the properties, is the son of Coca-Cola bottling magnate Summerfield Johnston Jr., who once headed Coca-Cola Enterprises Inc., the world’s biggest Coke bottler.
“I think it’s always great when you have local people investing in their own city, especially since there has been so many out-of-town buyers coming into our apartment market,” said Kim White, president of River City Co. “There is no doubt that the apartment market in Chattanooga is hot right now.”
River City is working with Unum to develop a parking lot just north of the Hogshead building to develop a commercial and residential project that could add up to 200 more apartments to downtown. Collectively, developers of student and market-rate apartments are preparing plans to add up to 2,000 more rental units in downtown Chattanooga.
The sale of the Hogshead and Robinson Apartments was brokered by Marcus D. Lyons, a director at Berkadia Real Estate Advisors who represented the buyers.
“There is a booming demand to provide affordable rental housing for young professionals and others who want to work and live in the heart of the city,” Lyons said. “These two apartment buildings have a long history of providing a quality living experience for their residents, and my client is committed to carrying that reputation forward.”
Both apartment buildings underwent historic renovations in the 1980s and 1990s, Lyons said.
Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340.