Outside investors continue to buy into Chattanooga's rental housing market.
An Austin, Texas investment company, GVA Property Management, purchased the Riverview Grande Apartments in North Chattanooga this week for $31 million in the latest among over $300 million of purchases made by outside investment groups of local apartment complexes in the past three years.
Buying into rentals
Since the start of 2016, investor groups have paid more than $300 million to buy apartment complexes in Hamilton County. The biggest purchases include: 1. Legends at White Oak in Collegedale sold for $41.8 million 2. Village at Apison sold for $31.9 million 3. Elements of Chattanooga on Standifer Gap Road sold for $31 million 3. Riverview Grande in North Chattanooga sold for $31 million 5. Bridgeway at Chattanooga on McCutcheon Road sold for $29.5 million 6. The District at Hamilton Place on Gunbarrel Road sold for $28 million 7. Arbor Creek Apartments on Standifer Gap Road sold for $26.6 million 8. Standifer Place Apartments Homes on Jenkins Road sold for $25.5 million 9. Ridgemont Apartments in Red Bank sold for $21 million 10. Mountain Brook Apartments on Mountain Creek Road sold for $20 million Source: Hamilton County Register of Deeds
The new owners of Riverview Grande, organized as Mansion Circle LLC, acquired the 12-acre site with a former Riverview mansion, now used as the apartment clubhouse, and 269 two- and three-bedroom apartments. The Riverview Grande Apartments were originally built in 1972 and the previous owners, organized as Riverview Grande LLLC, had owned the complex since March 2016.
GVA owns and operates apartment complexes in Austin, Dallas, Houston and San Antonio in Texas and in Clarksville, Tennessee.
"The GVA team believes multi-family residents appreciate and will pay for modern style at affordable prices, close proximity to jobs and school, and well-maintained complexes with curb appeal," the company says on its web site. "Once in place, you create long term value while mitigating investor downside risk, while improving communities."
GVA, like many other multi-family housing investors, see Chattanooga as an attractive market due to its growth, economic stability and below average prices for real estate.
The two- and three-bedroom units at the Riverview Grande Apartments rent for between $975 and $1,244 a month and the pet-friendly development includes a swimming pool, tennis court, conference room, fitness center and laundry facility, among other amenities.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340