Passco Pays $40M for Knoxville Community

The 220-unit Class A multifamily asset, which was completed last year, was 90 percent occupied as of September.
Tapestry at Turkey Creek. Image courtesy of Passco Cos.

Arlington Properties has sold Tapestry at Turkey Creek, a 220-unit luxury community in Knoxville, Tenn., to Passco Cos. for $40.4 million. The seller had developed the asset, which opened in 2018. IberiaBank and The Peoples Bank had provided the developer with $22.9 million in construction financing when the project broke ground in 2017, according to Yardi Matrix.

Investment sales have moved at a slow pace this year in Knoxville. Prior to Passco’s acquisition, only 5 properties totaling 818 units had changed hands in 2019, per data from Yardi Matrix. At the beginning of the year, MZ Capital Partners picked up a luxury suburban community in the metro, for $7.8 million.

Located at 810 Tapestry Way in Knoxville’s Hardin Valley submarket, Tapestry at Turkey Creek is just north of Interstate 40, roughly 15 miles west of the city center. A large retail corridor opposite the highway is a short distance away, with the Turkey Creek Medical Center a 3-mile drive east.

The community’s unit mix offers one-, two- and three-bedroom apartments, with floorplans ranging from 748 to 1,371 square feet. Amenities include a dog park, business center, saltwater swimming pool and gaming pavilion. Yardi Matrix shows that the property was 90 percent occupied as of September. The new owner has retained Arlington Properties to manage the asset.