For the third time in six months, out-of-state real estate investors have purchased a Hixson apartment complex at a premium from the property's previous sale price.
A Mississippi foundation acquired the Bluff View at Northside apartment complex last month for $18.3 million as part of the foundation's investment portfolio.
Matt Olson, vice president of acquisitions for the Nashville-based real estate management company Freeman Webb, said the Hixson rental market remains strong even with more apartment complexes being built in the area. Freeman Webb is managing Bluff View and helped arrange the purchase.
"We think Chattanooga is a strong rental market and we especially like the Hixson area," Olson said. "This is a well maintained property and this is a growing part of Chattanooga."
The 122-unit Bluff View Apartments complex on the side of Big Ridge in Hixson include one- and two-bedroom apartments that range from 800 square feet up to 1,500 square feet in size. Amenities include a fitness center, pool and playground. The apartments were built in four phases between 2000 and 2007 and currently rent from $965 to $1,439 per month.
The complex is currently about 98% occupied and Olson said the new owners are not anticipating any major changes in rents or capital improvements at the facility.
Photo by Dave Flessner / The Bluff View Apartments, which were built in 2000, sold for $18.3 milllionThe complex was last sold in 2013 for $11.2 million.
Bluff View Apartments is the third major Hixson multi-family complex to sell in the past six months at an appreciated price from previous years.
Springer Capital, which owns 21 other apartment complexes from Pennsylvania to Alabama, bought the 156-unit Autumn Brook apartments in Hixson in January for $14.7 million - or 36% more than the $10.8 million that the previous investment group from New York paid for the property in November 2016.
In December, the Knoxville real estate development firm known as The Dominion Group acquired the 148-unit Ridgeside Apartments at 6302 Hixson Pike for $11.3 million as part of a bigger purchase of five apartment complexes across Tennessee. Freeman Webb company handled that sale as well.
The sales come as two even bigger apartment complexes have opened in recent months in Hixson.
Last year, the 280-unit Integra Hills opened at Hillocks Farm just off Highway 153. At 6038 Hixson Pike, the 250-unit Lullwater at Hixson is opening this spring.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340.
Photo by Dave Flessner / The Lullwater at Big Ridge has begun leasing in Hixson.