Novare, BCDC Open 344-Unit Chattanooga Community

Pinnacle Financial Partners provided a $53.8 million construction loan for the luxury property.

Novare Group, in a joint venture with BCDC, has completed Populus Waterside, a 344-unit luxury community in Chattanooga, Tenn. This is Novare’s second property in the area. The development team included Dynamic Design, as well as MAP Engineers and Construction Enterprises Inc.

Construction began in 2022, after the joint venture bought the land for $7.5 million. A year later, the development became subject to a $53.8 million construction loan originated by Pinnacle Financial Partners, Yardi Matrix shows.

Including 13 buildings, Populus Waterside encompasses studio and one- to three-bedroom units ranging between 600 and 1,441 square feet. Community amenities include a swimming pool, a club room, a gym, a coworking lounge with private rooms and a conference room, a game room, EV charging stations, as well as grilling stations.

Populus Waterside took shape on 15 acres at 6930 Populus Loop in Hamilton County. The property is less than a mile south of Interstate 75 and U.S. Route 64. Downtown Chattanooga is roughly 14 miles east of the community. Employers such as Amazon, Erlanger East Hospital and Volkswagen are within a 4-mile radius. Residents have access to entertainment, dining and retail options at The Hamilton Place shopping center, located 1 mile away.

Charting Chattanooga’s multifamily market

Chattanooga is among Multi-Housing News’ Top 10 Emerging Multifamily Markets of 2024, ranking seventh on the list. The market has a steady supply pipeline, bolstered by 1,139 units that came online last year and another 2,780 underway as of December.

The rental market maintained a stable occupancy rate of 95.0 percent as of November, down just 40 basis points year-over-year. Although it has seen a modest transaction volume, the metro’s price per unit grew by 18.3 percent in 2023, reaching $143,928.

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