The Park Ridge Apartments in East Ridge and the Lakeshore Apartments in Fort Oglethorpe, Georgia, two suburban apartment villages built in the 1980s, have a new owner as outside investment firms continue to buy into the local multi-family housing market.
A suburban Nashville development company bought the rental properties last week as part of nine properties it purchased through an investment arm, Quiet Capital.
American Heritage Apartments Inc., a Wake Village, Tex.-based real estate firm, previously owned the apartments for the past 15 years. The Park Ridge Apartment sale was valued at $9.2 million, according to property records filed with the Hamilton County Register of Deeds.
"We look forward to a long term hold," said Tyler "TK" King, founder and co-CEO of the Brentwood, Tennessee- based Quiet Capital, calling the acquired apartments "a great value to our current portfolio."
As part of the ownership change, Providence Real Estate Management Co. has assumed management oversight for the Park Ridge and Lakeshore Apartments. Some of the units are being refurbished and the new owners are looking to renew rental leases with higher lease rates, in most instances, than what tenants paid in the past, officials said.
"We love the Chattanooga market and hope to acquire more there," King said, noting the company is " on a mission to intelligently grow" its portfolio.
Park Ridge Apartments, built on 11.8 acres in 1989, includes 168 one- and two- bedroom apartments, plus a community swimming pool and new fitness center and laundry facility. Stephen Weitzel, property manager, said the new owners are looking to rent the Park Ridge units for between $550 and $700 a month for a one-bedroom and from $830 to $900 for a two-bedroom unit.
In Fort Oglethorpe at the Lakeshore Apartments behind the Lakeshore/Fort Oglethorpe high school and the Battlefield Elementary School, the new rental rates will be around $520 to $650 for a one-bedroom unit and about $850 a month for a two-bedroom unit.
The apartment sales are the latest among more than $400 million of multi-family real estate properties acquired in Chattanooga since the start of 2016 by regional and national real estate companies. Despite an influx of more than $1.2 billion of new rental properties in Chattanooga planned or built in the past three years, rental rates for apartments in Chattanooga continue to rise, according to studies by online apartment services such as Zumper.com and Apartment List.
The Apartment List study released this week reported that average apartment rental rates in Chattanooga are up 2.4% over a year ago, nearly double the U.S. growth in average rent of 1.4% over the past year.
Currently, median rents in Chattanooga stand at $747 for a one-bedroom apartment and $929 for a two-bedroom. Although up from a year ago, Chattanooga rental rates still average about 20% less than the U.S. average and are more than 70% cheaper than San Francisco, the most expensive rental market where the average two-bedroom apartment leases for $3,123 a month.
Contact Dave Flessner at firstname.lastname@example.org or at 423-757-6340.