Braxton Lands $76M Financing for Knoxville Project
This long-term loan was secured through HUD.
Braxton Development has obtained $76 million in construction-permanent financing for the development of Icon Apartment Homes at Lovell Road, a 307-unit project in Knoxville, Tenn. The 221(d)(4) 40-year loan financed through HUD features a 5.75 percent interest rate.
Berkadia Managing Director Jennifer Quigley arranged the loan on behalf of the borrower.
The developer secured the financing approval more than a year ago, but delayed locking in construction costs and the long-term interest rate until the timing was ideal, Quigley said in a prepared statement.
Partners on the project include general contractor Construction Enterprises Inc. and KEPHART as architect of record. RAM Partners will manage the property upon completion.
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Located at 10801 Austrian Pine Way, the community is 8 miles away from the city’s downtown area. Knoxville Downtown Island Airport is less than 13 miles southeast.
The development will consist of 11 apartment buildings and five carriage-style buildings. The unit mix is set to comprise 83 one-bedroom, 177 two-bedroom, and 47 three-bedroom floorplans. Common-area amenities will include a fitness center, clubhouse with community room and kitchen, yoga and bike studio, dog park with pet spa and sports simulator. Additionally, the community will have a game room with billiards, swimming pool with cabanas, playground and outdoor grilling stations and recreation areas.
Last year, Braxton Development completed the second phase of Icon Apartment Homes at Hardin Valley, another multifamily property in Knoxville. That community now totals 421 units.
Knoxville’s multifamily inventory continues to grow
As of May, the Nashville-Knoxville metro had 91 multifamily projects totaling 22,972 units under construction, according to Yardi Matrix information. Another 311 properties were in the planned and prospective stages, set to add more than 75,000 apartments upon completion to the metro’s inventory.
Last month, Wood Partners broke ground on three multifamily projects, one of them located in Nashville. Dubbed Gallatin, the development will comprise 372 units, with first apartments set to come online by next spring.
