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Berkadia Real Estate Advisors is pleased to present The Villas Portfolio, featuring three new Class A+ Built-for-Rent apartment communities totaling 295 units in the booming city of Chattanooga. Each community represents best-in-class construction quality and amenity offerings. The Properties offer direct access to major employers and the largest economic centers within Chattanooga. The submarket showcases strong fundamentals with significant effective rent growth projections. Future burnoff of lease-up “Construction Discount” and rental rates achieved at competing top-of-market peers offer substantial future rent growth. The Villas Portfolio provides an exclusive opportunity to acquire a portfolio of three Class A+ communities in the Built-for-Rent space utilizing conventional multifamily operations and traditional multifamily financing.
Portfolio Summary
128
Units
2023
Built
8787 Gemstone Circle, Chattanooga, TN 37421
Hamilton Villas
85
UNITS
2021
Built
2530 Forest Villa Circle, Chattanooga, TN 37421
Forest Hill Villas
82
UNITS
2020
BUILT
2209 Ashford Villas Circle, Chattanooga, TN 37421
Ashford Villas
Premier A+ Single-Story "BFR" Portfolio with Fenced in Patios for Every Unit
Unique design offers fenced in patios for every unit, low density, one-story buildings, and high-end unit finishes
Perfectly situated on beautifully landscaped lots, the Properties' low density offers multiple greenspaces and unmatched privacy compared to traditional apartment living
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Accretive Assumable Debt and Outstanding Submarket Fundamentals
Ashford Villas has an assumable 3.46% 10-year note with ~8 years remaining with ~3 years left of I/O
Forest Hill Villas has an assumable 3.66% 10-year note with ~9.5 years remaining with ~6.5 years left of I/O
Submarket has experienced over 32% average effective rent growth since 2020 with over 14% average effective rent growth projected by 2026
Average occupancy of the submarket is 95%
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Exceptional Connectivity
Easy access to over four million square feet of premier retail including grocery
Rapid drive times to over 100,000 jobs
Proximate to I-75 providing direct connectivity to downtown Chattanooga and multiple employment nodes
10 minutes from Volkswagen, one of the region’s top employers with over 4,700 employees
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Chattanooga Economy Experiencing Explosive Growth
Employment has grown by over 19% since 2013 and is projected to grow an additional 7% by 2033, catalyzed by recent new developments and the region’s dominate healthcare and education, advanced manufacturing, government, and tourism industries
Stemming from the region’s exceptional job growth, the population within one mile of the Portfolio has grown by more than 14% since 2010
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Mature, Affluent, and Lifestyle-Driven "Renter by Choice"
Robust leasing velocity sets stage for future rent growth
Construction discount and removal of lease-up pressure creates significant rental headroom
Exceptional submarket fundamentals support future rental upside and high occupancy
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Chattanooga, known as “Gig City” benefits from a diverse mix of industry and services, a history of sustainable population growth, and reasonable tax rates that combine to help the regional economy maintain a healthy balance. The city continues to attract a highly skilled workforce due to the robust fiber optic internet speeds that have attracted multiple tech companies. Chattanooga is home to a prolific job network including top employers such as Volkswagen, BlueCross Blue Shield and Erlanger Health System. Local lifestyle attractions such as Heritage Dog Park, Bluff View Art District, Blue Goose Hollow Trail and Lookout Mountain continue to drive the regions growth. With thriving residential communities, growing businesses, and numerous recreational activities, Chattanooga offers a high quality way of life.
“One of the Best Places to Travel in 2023”
Forbes
“One of the 10 Great Cities in the US for Outdoor Adventure”
Washington Post, 2022
“One of the Best Mountain Towns in the U.S.”
Outside Magazine 2022
“One of the Best Places for a Dreamy Retirement”
Southern Living Magazine, 2022
“One of the Best Places to Travel in June”
Travel and Leisure, 2022
“One of 6 Great Cities for Startups”
CNBC
#1 Best City to Work From Home
Zillow
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
© 2023 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.
JOHN BRAY
Senior Managing Director
404.654.2595
john.bray@berkadia.com
Mortgage Banking
RUSS HARDY
Managing Director
404.422.0499
russ.hardy@berkadia.com
DAVID WILSON
Senior Director
256.682.9143
david.wilson@berkadia.com
TYLER HOGAN
Director
404.654.2609
tyler.hogan@berkadia.com
Investment Sales
RICHARD LEVINE
Senior Managing Director
404.654.2590
richard.levine@berkadia.com
TOM GENETTI
Managing Director
205.403.5545
tom.genetti@berkadia.com
The Villas Portfolio
Chattanooga, TN
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Attractive Loan Assumptions:
Ashford Villas - 3.46% Rate
Forest Hill Villas - 3.66% Rate
Hamilton Villas - Free and Clear
Portfolio Details
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The Villas Portfolio
Chattanooga, TN
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Assumable 3.46% 10-year note
Assumable 3.46% 10-year note
Property Tour
Portfolio Details
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Premier Portfolio of Three Class A+ Horizontal Built-for-Rent (BFR) Apartment Communities
Attractive Loan Assumptions:
Ashford Villas - 3.46% Rate
Forest Hill Villas - 3.66% Rate
Hamilton Villas - Free and Clear
Free and Clear
Free and Clear
Free and Clear
JOSH FINLEY
Managing Director
404.654.2594
josh.finley@berkadia.com
Assumable 3.66% 10-year note