This story was updated Friday, Nov. 8, 2019, at 11 p.m.
A New York real estate investment company has acquired a 100-unit apartment complex in East Ridge with plans to upgrade the 49-year-old facility.
An affiliate of Quad Property Group bought The Belvoir on Fountain Avenue in East Ridge for $6.55 million as its first acquisition in Tennessee.
"We are very bullish on Chattanooga," said Jariel Bortnick, a principal at Quad Property Group. "It's a place where we have wanted to be for some time with all of the growth in the area and the entrepreneurial spirit we see. This acquisition fits the typical profile of the apartments we target — older, well-located properties that could benefit from a renovation program and more hands-on management."
Michael Kashan, also a principal at the Quad Property Group, said the new owners plan to enhance the exteriors and common spaces at The Belvoir, including a revamp of the swimming pool deck and additional landscaping, while also renovating the interior of some of the units.
First Communities Management, an Atlanta-based apartment management firm for about 50,000 apartment units across the country, has assumed management of the The Belvoir.
The complex was built in 1970 on 5.6 acres at 3725 Fountain Ave. and includes one-, two- and three-bedroom units that now lease anywhere from $660 to $830 a month. Bortnick said rental rates could rise over time but will remain competitive in the market.
The Belvoir also features an on-site leasing office, resident clubhouse, swimming pool, picnic and grilling area and children's playground.
Despite the addition of more than 6,000 built or planned apartments and condominiums in Chattanooga since 2015, Kashan said the Belvoir is about 95% occupied and remains attractive in its price range for working couples and families.
"Certainly there has been a lot of new apartments added in Chattanooga, but the bulk of the new construction is what is considered luxury, class A product," he said. "What we are doing here at The Belvoir is taking an older complex that isn't so luxurious and bringing up the tenant experience to what you would expect in 2019 at a price point that remains competitive."
Contact Dave Flessner at email@example.com or at 423-757-6340.