A California investor has purchased a new apartment complex that opened last month at Main Street and Central Avenue for $6.1 million as outside investors continue to buy into the Chattanooga rental market.
The four-story East Line apartment complex was built by developer Thomas Connolly, who bought the corner lot in 2019 and erected the 36-unit facility over the past year. Tenants began moving into the one- and two-bedroom units in June, and a Tiburon, California-based investment partnership known as Horiates Chatt LLC bought the complex last week from Connolly’s group, which was known as Infill Central Avenue LLC.
“The Southside and Main Street corridor remains incredibly hot for development with a strong interest for both tenants and buyers,” Connolly said in a telephone interview Friday. “Even with higher interest rates and rental prices, we’re still seeing a lot of strength in the local market. There may be a little bit of a swing downward this year, but there is still a lot of pent up demand.”
The 36-unit East Line apartment complex includes a variety of studio, one- bedroom and two-bedroom options, ranging in monthly rental rates from $1,150 up to about $1,500 a month, Connolly said. The complex will continue to be managed by SVN Second Story Real Estate Management.
The sale of the East Line apartments is valued at nearly $170,000 for each of the one- and two-bedroom apartments. It comes in the wake of another nearby sale of an new housing development. A Nashville investment firm known as Material Ventures bought the Burnside development a couple of blocks to the south, near Central and Rossville avenues, from local investors Towson and DeDe DuBose Engsberg. The Burnside development includes 33 apartments, but it may be expanded to add more housing along with a new restaurant and other commercial development.