In the past year and a half, investors have bought more than $200 million of rental properties in Hamilton County. The biggest purchases include:
Amberleigh Ridge Apartments on East Brainerd Road sold for $33.7 million in March, 2013
Integra Hills Apartments on Little Debbie Parkway in Collegedale, sold for $31.7 million in August, 2014
Carriage Parc Apartment Homes on Gunbarrel Road sold for $29.3 million in December, 2014
Shallowford Apartments on Shallowford Road in East Brainerd sold for $23.45 million in October, 2014
The Reserve at Creekside Village Apartments on Reserve Way sold for $18.9 million for March, 2014
Mountain Ridge Apartments on Mountain Creek Road sold for $14.4 million in September, 2014
Source: Hamilton County Register of Deeds
One of Chattanooga's biggest apartment complexes has a new name and owner as real estate investors continue to buy up major rental properties in the Scenic City.
The former Carriage Parc apartment complex in East Brainerd has been renamed Parc 1346 after the 316-unit complex was recently purchased from its original owners for nearly $29.3 million. The complex is now managed by the Memphis-based Fogelman Management Group, which jointly owns Parc 1346 along with investors from the New York City-based DRA Advisors LLC and the Birmingham, Ala.-based LIV Development.
The sale this month is the latest among nearly $200 million of rental real estate properties that have sold in the Chattanooga area in the past year and a half.
"Chattanooga is now seen as a reliably strong rental market and investor and REITs (real estate investment trusts) are paying more for apartments complexes, if they are big enough and have a strong operating history, than in the past," said said Henry Glascock, a Chattanooga property appraiser.
With interest rates near historic lows and a lesser share of the population buying new homes, apartment complex are viewed more favorably and are commanding higher sales prices from investors looking for ways to get more return for their dollar.
"Coming out of the recession, apartment properties are faring much better than either single-family homes or commercial real estate properties because the right properties are seen being reliable investments that can yield a respectable return in the 5 percent to 7 percent range that these investment groups are looking to achieve," Glascock said.
Carriage Parc, originally built in 1999, includes 14 apartment buildings. One of the buildings was destroyed in January by a fire that erupted when a tenant tried to put out a cigarette in a flower pot on the porch of one of the units. The fire spread on the wooden balcony and vinyl siding and ultimately destroyed the building and displaced 75 residents.
But the owners rebuilt the building, which reopened in December for new tenants.
"This building has been opened back up with 24 units after we upgraded it and it looks fantastic," said Marcie Evans, business manager for Carriage Parc.
The new name for the Gunbarrel Road complex reflects the changes in the 15-year-old facility, Evans said.
"We want a new start with the community to show that we're going to do things right and offer a great complex that treats people right," she said. "We have great space in these apartments, but it's also going to be a little bit more polished, modern and upbeat."
Parc 1346 includes a swimming pool, a 24-hour-a-day fitness center and two ponds that are stocked with fish.
"It's a great location close to Interstate 75 and the mall, but it is still very quiet and protected," Evans said.
Rental rates vary from $730 for an 850-square-foot, one-bedroom unit up to $1,160 for a 1,394-square-foot, three-bedroom unit.
"All of the units have 9-foot ceilings and have a great floor plan so you don't feel like you are in an apartment," Evans said.
The complex is within a couple of blocks of the similarly sized Amberleigh Ridge Apartments on East Brainerd Road, which sold for $33.7 million last year.
Contact Dave Flessner at firstname.lastname@example.org or at 757-6340.