In its third apartment purchase in the Chattanooga market in the past six years, the Chicago-based Tricap Residential Group has purchased the Cross Creek Villas off of Highway 58 for just over $30 million.
The new owners have renamed the 232-unit complex to Haven Cross Creek and are planning to upgrade most of the one-, two- and three-bedroom apartments in the 11-year-old facility at 4025 Oakwood Drive.
"We love the Chattanooga market and we ran across this wonderful value-add opportunity," said Suzanne Hopson, executive vice president of sales and marketing for TriCap. "As we do with most of our properties, we will do our value-add strategy which will include some unit renovations, modernizing the common areas and bringing our professional management to the complex. We will increase the value and resident services of this property."
The purchase was the biggest property transfer during one of the busiest months for property sales in Hamilton County during March, according to Hamilton County Register of Deeds Marc Gravitt.
"The month was the busiest month the Register's Office has had in almost 20 years, both in the volume of documents recorded and taxes collected," Gravitt said. "We recorded over 8,300 document sets, and collected over $2.4 million in state-mandated transfer and mortgage taxes."
Outside investment groups like the Chicago-based Tricap Residential Group have been buying many of Chattanooga's biggest apartment complexes over the past decade. In just the past six years, 10 apartments in Hamilton County have sold for $30 million or more to real estate investment groups headquartered outside of Chattanooga, according to county records.
Last year, property sales in Hamilton County rose to a record high of more than $3 billion, according to the Hamilton County Register of Deeds, as low-interest rates and rising property values attracted more buyer interest in the area.
Built in 2009, the Cross Creek Villas includes apartments ranging from 742 square feet to 1,337 square feet. The units currently rent for between $845 to $1,250 but rents may rise over time as upgrades are made to the facility. The complex includes a swimming pool, playground and dog park and Hopson said a shared area for office work will be added in the clubhouse.
TriCap, which owns and manages 20 apartment complexes across the Midwest and MidSouth, bought the 40-unit Southside Flats in Chattanooga in 2015 and acquired the 66-unit Links apartments on Reads Lake the following year.
Founded in 2007, Tricap Residential Group is fully integrated multifamily company specializing in property management, acquisition & development, and advisory services.
"We're always looking for opportunities for our value-add strategy across the Midwest," Hopson said. "Chattanooga has a wide variety of choices for renters from high-end to affordable and we want to be right there in the middle."
Contact Dave Flessner at email@example.com or at 757-6340
Buying into Chattanooga's rental market
In the past five years, real estate investment firms outside of Chattanooga have bought more than $400 million of apartment complexes, including 10 valued at $30 million or more.
1. The 283-unit Bluebird Row Apartments at the Chattanooga Choo Choo sold for $63.15 million in March 2020.
2. The 316-unit Parc 1346 apartments off of Gunbarrel Road in East Brainerd sold for $46.8 million in December 2020.
3. The 308-unit Marina Pointe Apartments on Lake Shore Drive in Hixson were sold for $44.5 million in October 2020.
4. The Legends at White Oak in Collegedale sold for $41.8 million in September 2016.
5. The 318-unit Haven at Commons Park near Hamilton Place Mall sold for $40.5 million in July 2017.
6. The 260-unit Hunters Point apartment complex in East Brainerd sold for $35.8 million in September 2019.
7. The 252-unit Shallowford Apartment Homes in East Brainerd sold for $32 million in July 2019.
8. The 269-unit Riverview Grande apartments sold for $31 million in May 2019
9. The 232-unit Cross Creek Villas off of Highway 58 sold for $30.01 million in March 2021
10. The 280-unit Rise at Signal Mountain apartment complex on Mountain Creek Road sold for $30 million in January 2020.
Source: Hamilton County Register of Deeds
CORRECTION: This story was updated at 10:58 a.m. on Tuesday, April 6, 2021, to correct the year in item nine of the table to 2021.