- Exceptional Location Near Employment, Retailers, & Entertainment
- Incredible Knoxville Multifamily Fundamentals
- Proven Interior Renovation Value-Add Opportunity
- $256/Unit in Significant Premium-Level Renovations to Capture
- Proven Organic Rent Increases on Classic Units
- 10.08% Loss to Lease Can Easily Be Captured
- Over $5.36M ($14,227 per Unit) Invested in Capital Expenses!
- Increasing Monthly Revenues and Low Delinquency
- Value-Add Opportunity Through Additional Amenities
- Offered Free and Clear of Existing Debt
Exceptional Location Near Employment, Retailers, & Entertainment
Strategically positioned in thriving Knoxville, The District is poised to take advantage of the metro’s young renter demographic. The University of Tennessee, which boasts a student body of nearly 32,000, is less than ten miles from the property. The District is also near major employers such as Covenant Health, with the corporate office only five miles from the property. Downtown Knoxville is less than ten miles from the property, offering a wide variety of retail and restaurant options for tenants. The District is only a mile from the highway, providing quick connectivity to both entertainment and major employers.
Incredible Knoxville Multifamily Fundamentals
The multifamily fundamentals offered by the Knoxville market provide both stability and growth opportunity for investors. Knoxville boasts an incredibly low vacancy rate of 3.7%. The economic base is diversified, offering a stable environment with a reputation for a low cost of living and a low cost of doing business. This has fueled population growth, contributing to an extremely tight renter market. Even with record amounts of new construction, the market has seen 9.6% YoY annual rent growth as of Q2 2023. In terms of annual rent change performance, Knoxville ranks #2 in the South and #3 nationally.
Proven Interior Renovation Value-Add Opportunity
160 units (43%) received new LVP flooring, stainless steel appliances, brand new cabinets, tile backsplash, new countertops, new carpet in the bedrooms, fresh paint, updated fans and light fixtures, and tub resurfacing. Renovated market rents are about $67 per month above what classic units are achieving. There are two reasons for the small delta. For one, renovated unit rents are simply too low. There is likely an additional +/-$100 of organic rent increase to be collected. Secondly, most of the renovated units were leased in Q1 and Q2 2023. Due to the significant lease trade outs the seller was achieving on classic units, he decided to stop renovating interiors and focus on pushing rents organically.
