A Birmingham, Alabama-based real estate investment firm has bought the Rise at Signal Mountain apartment complex on Mountain Creek Road with plans to upgrade the 34-year-old complex.
StoneRiver Co., acquired the 280-unit complex last week for $30 million and has turned over management of the facility to its property management affiliate, StoneRiver Properties.
"We love Chattanooga and think it is a strong renter demand in the market," StoneRiver President Joseph Welden said Friday. "We saw a great opportunity to buy this property and make a value add by making some improvements to the site. It's part of our strategy going forward and we plan to continue to invest in Chattanooga."
Welden said the new owners will upgrade the interior of the one- and two-bedroom apartments, which are grouped in 19 buildings across the 43-acre site on the side of Signal Mountain, and will improve both the clubhouse and the landscaping at Rise at Signal Mountain.
Photo by Dave Flessner / Rise at Signal Mountain includes 280 one- and two-bedroom apartments and was sold in January 2020 for $30 million.The apartment complex is one of 18 apartment complexes across the Southeast owned by StoneRiver. The company developed and built the 248-unit Village at Apison in Collegedale, which it sold in 2017 for $31.9 million.
Chattanooga's suburban apartments continue to attract outside investment interest as the region continues to add jobs and rents continue to rise. Last year, eight of the 10 biggest real estate sales were of suburban apartments and sales of multi-family housing complexes collectively totaled more than $200 million.
Apartment rental rates in Chattanooga continue to rise faster than the U.S. as. whole, according to surveys by Zumper. A new survey by the online rental service said apartment rental rates in Chattanooga are up by more than 15% over the past year. Nationwide, apartment rental rates were basically flat over the past 12 months.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340.