A Knoxville real estate company that has already built or bought a handful of other apartment and senior living complexes in Chattanooga made its biggest purchase yet into the local market this week, paying $41.7 million to buy the Riverview Grande Apartment complex in North Chattanooga.
The Dominion Group, which has bought and upgraded other apartment complexes in Hixson and East Brainerd, plans to continue the refurbishing and improvements started by the previous owners of the Riverview Grande in North Chattanooga.
"We've been extremely interested and active in Chattanooga where we see good job growth and a growing demand for apartments and this is a continuation of that strategy," said Kevin O'Brien, director of development at Dominion Group. "We've been looking in the Northshore and North Chattanooga area and we just love the activity and momentum going on in that part of town. This was a great opportunity to enter that part of the Chattanooga market."
The $41.7 million purchase price for the 269-unit Riverview Grande values the typical two- and three-bedroom units in the complex at $155,000 each and is nearly 35% above what the former owners, GVA Property Management in Austin, Texas, paid to buy the property just two years ago.
Originally built in 1972 around a century-old, three-story mansion originally erected in 1925, the 12-acre Riverview Grande apartment complex includes a swimming pool, tennis court, conference room, fitness center and laundry facility, among other amenities. The complex is located at the corner of Old Dallas Road and E. Dallas Road in North Chattanooga.
O'Brien said the new owners have put the apartment complex under the Dominion management group and plan to complete the refurbishing of most of the units within the next year.
Dominion opened a senior living facility near Abba's House in Hixson in 2016 and later built a nearby 89-unit independent senior living community. In 2019, Dominion's multi-family housing division bought the 148-unit Ridgeside apartment complex in Hixson and last year the company also acquired the 240-unit Standefer Place apartments for $35 million and rebranded the property to the Scenic Ridge apartment complex.
The Dominion Group in Knoxville currently manages 2,441 rental units in 15 communities along with another 711 apartments and assisted living units targeted at seniors. The company values its current portfolio at nearly $719 million with projects in Tennessee, Kentucky and North and South Carolina.
Dominion's purchase of the Riverview Grande continue a decade-long trend of outside investment groups buying into Chattanooga's rental market and bidding up apartment prices. In the past six years lured by Chattanooga's growing housing demand and appreciating property values., outside investors have paid more than $500 million to acquire Hamilton County rental properties.
Contact Dave Flessner at email@example.com or at 423-757-6340.