Apartment building near chicken plant on Chattanooga's Southside sells for $37.5 million

Buyer calls Chattanooga the 'next Austin'

Staff file photo/ The 17 Broad apartment complex on Broad Street in downtown Chattanooga borders 17th Street and the 50-year-old Pilgrim's Pride poultry plant.

A 158-unit apartment building that sits across from the Pilgrim's Pride chicken processing plant in downtown Chattanooga's Southside has sold for $37.5 million.

Capital Square, a Virginia-based real estate firm specializing in tax-advantaged investments, brought 17 Broad, which opened last year at 1701 Broad St.

The deal is Capital Square's fourth apartment acquisition in Chattanooga, with its chief executive saying that the city is poised as the next Austin, Texas.

Louis Rogers, founder and CEO of the company, said his business is bullish on Chattanooga because the area is projected to have high occupancy and rent growth. He cited Chattanooga's location near Atlanta and Nashville, substantial area gross domestic product growth, low cost of living, and high quality of life.

The five-story Broad Street complex was sold by J.A. Murphy Group of Knoxville.