(Read more on the multifamily market.)
CHATTANOOGA, TN-A joint venture between CORE Real Estate Services and Broder & Sachse Real Estate, both based in Birmingham, MI, has acquired the 296-unit Mountain Creek Apartments apartment and townhouse complex at 936 Mountain Creek Road for $13.2 million.
The property was acquired with a non-recourse Fannie Mae loan from Prudential. The loan has a 10-year term with interest-only payments in the first five years. The seller was an out-of-state private investor. Atlanta-based Brown Realty Advisors represented the sellers in the transaction.
The property, which was 93% occupied at the time of the sale, is at the intersection of Mountain Creek Road and North Runyan Drive and is five miles from downtown Chattanooga. Rents for the apartments are from $515 for a one-bedroom unit and from $585 for a two-bedroom unit. Rents for the townhomes are from $675 for a two-bedroom unit and from $790 for a three-bedroom unit. "Mountain Creek has an excellent unit mix with over 25% townhouses set on 55 rolling acres in the shadow of Signal Mountain," says Broder & Sachse president Richard Broder, in a prepared statement.
The joint venture is planning to spend $2 million on upgrading the property. The upgrades will include a complete exterior renovation with all new roofs, painting of all buildings, new balconies, updating and modernizing both clubhouses, adding a workout facility with business and media center, adding a children's park area and updating both outdoor pools. "Broder & Sachse and CORE are seeking other multifamily and retail property investment opportunities in Nashville, Knoxville and Chattanooga," Broder says.
Broder & Sachse has developed and acquired more than $250 million of multifamily, retail and boutique office properties in Michigan and the Southeast. The company currently manages 70 properties consisting of more than eight million sf and 2,000 multifamily units. CORE has been involved in the acquisition of more than 1,000 multifamily units valued at more than $50 million.
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