Nov. 4 — A Los Angeles real estate investment company that has acquired nearly 250 apartments across the country in the past eight years enters the Chattanooga market with a $ 35.7 million purchase from one of the largest apartment complexes in Red Bank.
TruAmerica Multifamily last month purchased the 226 Ridgemont apartments in Stringers Ridge as part of Hamilton County’s largest real estate transfer, according to county real estate records.
Investors paid nearly 70% more than what a Minnesota-based investment group Timberland Partners had paid three years earlier to buy the Ridgemont apartments. Timberland has renovated most of the units in the 30-year-old resort.
Ridgemont in Stringers Ridge is TruAmerica’s first acquisition in Chattanooga and its third in Tennessee in the past 10 months. Built in 1988, the property offers a mix of one and two bedroom apartments as well as amenities such as a swimming pool, fitness center and dog park. Ridgemont is also the only apartment community with a trailhead on Stringer’s Ridge, a 92-acre nature preserve with popular walking, mountain biking, and hiking trails.
Matt Ferrari, co-director of investments at TruAmerica, said the new owners plan to complete renovations on the remaining 32 apartments as well as make other improvements to the complex.
“We have been very active in the Sunbelt and made acquisitions in Nashville and Atlanta,” said Ferrari. “Chattanooga is right in between these markets and it’s a strong market we wanted to be in. While this property has been well maintained and operated by its previous owner, we felt there was still room to do renovations and take advantage of the tailwinds of the market. “
The purchase may not be the last in Chattanooga for TruAmerica.
“Our preference is to own multiple properties on the market,” said Ferrari. “Chattanooga ticks all the boxes when it comes to the demand drivers we are looking for in a multi-family market. Its high level of affordability and continuous migration were several of the key factors we assessed before entering this new market.
The growing interest in investing in properties like Ridgemont in Stringers Ridge is part of a growing appeal among large apartment complexes in Chattanooga by national real estate investment firms.
Over the past six years, national real estate investment companies have collectively spent more than $ 500 million to acquire dozens of multi-family complexes in the Chattanooga area, according to county property sales records.
“We are seeing healthy price appreciation across the country and in particular in the Sunbelt,” said Ferrari.
The rising rents that accompanied the trend prompted complaints from affected tenants.
In addition to the sale of the Ridgemont apartments, Tag Manufacturing last month sold its buildings in the Enterprise South Industrial Park for a combined $ 40.7 million to New York real estate investment company WP Carey, which is one of the largest sale and leaseback properties in the country. investment trusts.
Another major real estate sale last month was at the Holiday Inn in Hamilton Place on Center Street, where VND Chattanooga LLC bought the 10-year-old hotel from KBS Hotel LLC for $ 12.5 million.
Contact Dave Flessner at [email protected] or 423-757-6340.