A Philadelphia-based real estate equity fund has purchased the Rainbow Creek Apartments in East Brainerd and is looking to acquire additional rental properties in the Chattanooga market.
The $9.1 million purchase of the 200-unit apartment complex on Standifer Gap Road by Springer Capital LLC is latest of more than $200 million of multi-family housing complex sales this year in the Chattanooga area to investment funds buying into the local market.
"We like the Chattanooga market and what is happening in this corridor," said Thomas Farnoly Jr., a principal in Springer Capital, which also owns 21 other apartment complexes in six states. "There are a number of apartment projects under construction in Chattanooga, but we like the job growth and prospects in this area and we'd like to acquire other properties in the market."
Springer Capital has hired Brookside Properties of Nashville to manage the Rainbow Creek Apartment complex, which was originally built in the year 2000.
The complex includes a variety of apartment layouts from studio units up to four-bedroom units and range in size from 574 square feet up to 1,713 square feet. Rental rates range from around $860 a month for studio units up to $2,000 a month for the premium three and four-bedroom units.
Rainbow Creek Apartments has a total of 146,919 square feet of building space arranged in a number of two-story buildings erected around a common playground. Farnoly said the new owners will make upgrades to the facility but have no major, immediate renovation plans for the facility.
Rainbow Creek is just down the road from the 260-unit Hunters Point apartment complex that sold in August to a California-based real estate investment firm for $35.8 million.
Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340.