Hamilton Zanze Grows Tennessee Portfolio

The purchase, a newly built 238-unit luxury community, is the firm’s sixth in the state.
Bluebird Row Apartments. Image courtesy of Hamilton Zanze

Hamilton Zanze has made its first acquisition in Chattanooga, Tenn., through Bluebird Row Apartments. The firm purchased the 238-unit community for an undisclosed price and from an undisclosed seller.

Located at 1348 Passenger St., Bluebird Row was completed in 2019 by LIV Development. The property offers studios, one-, two- and three-bedroom units that average 935 square feet and are equipped with smart thermostats. Billed as a luxury community, Bluebird Row’s amenities include a swimming pool, rooftop lounge, 24-hour self-serve market, outdoor grilling stations, rock climbing wall, bocce ball court, pet spa and yoga/spin studio.

According to Yardi Matrix data, the property was 95.8 percent occupied with tenants paying an average rent of $1,579.

David Nelson, Hamilton Zanze’s managing director of acquisitions, said in prepared remarks that Bluebird Row was an attractive opportunity because the property was brand-new, offered many amenities and is located in downtown Chattanooga. The community is also located near Interstates 24 and 75 for access to major area employers like Blue Cross Blue Shield of Tennessee, Tennessee Valley Authority and Amazon.

NEWLY BUILT TO QUICKLY BOUGHT

Hamilton Zanze has now acquired its fourth property this year and Bluebird Row marks the sixth in Tennessee. Last month, the firm purchased a 248-unit multifamily community in Spring Hill, Tenn., that was built in 2017 for $53.3 million. In October 2019, Hamilton Zanze also purchased a newly developed 224-unit community near downtown Nashville for $57.1 million.

While these acquisitions and Bluebird Row were all newly-built properties, Nelson told Multi-Housing News that the company looks for communities of any age.

“Hamilton Zanze pursues assets of different vintage and condition based upon the opportunity (and) we have had successful investments across the vintage spectrum,” Nelson told MHN. “Lately, we have had several newer developments come into the fold as a result of our strong network of broker relationships.”