A Chattanooga real estate group has raised $23 million for an investment fund aimed at local and regional mixed-use and urban in-fill projects.
Aslan Holdings expects its fund, raised from mostly Chattanooga investors, will finance nearly $150 million in new development, said Tiffanie Robinson, an Aslan managing partner.
"We're bullish on downtown and Greater Chattanooga," she said in an interview. "Beyond Chattanooga, there are communities that look and feel like Chattanooga that we think are right for developers like us to come into."
The first project is breaking ground in Memphis later this year, with others under contract and in due diligence in Chattanooga and Knoxville, Robinson said.
Aslan Managing Partner Matt McGauley said three properties are under contract for development in Chattanooga, though he declined to reveal specifics.
"We're being very active right now," he said in an interview. "We plan to spend 50% plus, probably more than that, within the Chattanooga area and diversify in other markets."
Despite the choppy economy, Aslan officials started last September raising money for the fund and have completed that process, Robinson said.
"To me, it's exciting we had such a strong fundraise even in such a difficult climate," she said. "It's a testament to our story and philosophy."
Aslan officials think they're doing something that's a bit of a first in Chattanooga, Robinson said.
McGauley said the capital for Aslan Fund II was raised without having projects.
"We raised that money talking about a story and opportunities on the horizon," he said. "Some people we talked to understood right off the bat. No one disagreed with the story. If they didn't get in, it was more tied to a personal financial picture."
Aslan was formed in 2022 when Fidelity Trust Co., SVN Second Story Real Estate Management and Lamp Post Properties combined.
One of the largest property owners in downtown Chattanooga, Aslan has in addition to Robinson and McGauley Chattanooga businessmen Ted Alling, Allan Davis, Barry Large and Brent Large as general partners, according to the company.
The group recently unveiled Somer Station on downtown's North Shore, a live-work concept representing an investment of more than $17 million on 2.5 acres between Cherokee Boulevard and Somerville Avenue.
While there are negative headlines nationally about commercial real estate, Aslan officials said they see opportunities in Chattanooga and cities like it.
"We think Chattanooga will stay strong for the long term, and really a lot of communities that look and feel like Chattanooga will do the same thing," Robinson said.
McGauley said Chattanooga historically doesn't see the type of booms and busts as larger cities. He also cited an in-migration of people into the area.
"Chattanooga is holding up fairly well," he said. "Tennessee is holding up really well."
Aslan, to meet new growth, made a couple of recent hires. Alicia King is marketing manager, and Megan Freeman is relationship manager, according to the company.
King will implement strategy and manage the marketing needs for Aslan and its operating companies, SVN Second Story Real Estate Management, FTC Development and the Tomorrow Building. Freeman will oversee the Aslan portfolio's asset performance and manage investor relations related to Aslan Fund II.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.