Chattanooga, Tenn.—American Residential Investment Partners has acquired two properties located in Chattanooga, Tenn.: the 68-unit Arlington East Apartments and 170-unit Concorde Apartments.
The two properties were purchased from the lender for $5,900,000, which was a significant discount to the $12,340,000 outstanding principal balance of the previous borrower. The acquisition of the properties was financed by Freddie Mac.
Concorde Apartments and Arlington East Apartments are located at a major intersection within one mile of the local hospital, a large medical office park, a Target-anchored shopping center and the largest enclosed shopping mall in the State of Tennessee. The retailers within this area make the corridor a shopping destination much like that of South Park Mall in Charlotte, N.C. and Cameron Village or North Hills in Raleigh, N.C.
On the day of closing, both assets were 97 percent occupied and the annualized Net Operating Income represented a 9.5 percent cap rate based on the purchase price. American Residential co-sponsored the acquisition with Charlotte, N.C. based Grubb Properties. The sale was brokered by the Atlanta office of Southeast Apartment Partners.
American Residential is currently evaluating a number of other potential acquisition opportunities throughout the Southeast and believe that the best opportunities are still to come.
This acquisition marks the first by American Residential and its principals in nearly three years, highlighting its disciplined approach to investing, says the company.