PPR Purchases Knoxville BTR Community

PPR Capital Management has partnered with Center Creek Capital Group to acquire the Highline at Knoxville, a build-to-rent community in Knoxville, Tenn. The acquisition, purchased for $87 million, includes both Phase I and Phase II of the community.

The transaction included a total equity investment of $26.6 million, with PPR contributing $25 million as the primary equity partner. The purchase marks the firm’s first BTR investment and second property in Tennessee.

Phase I of the community, completed in 2023, includes 110 detached homes currently in lease-up. Phase II, which is currently under construction, will feature 151 townhomes and detached homes.

Phase II is anticipated to deliver throughout 2026 and 2027. Its market-rate apartments are forecasted to be completed on time as part of a three-year development and stabilization plan.

All units in Highline at Knoxville feature layouts of three- to four-bedrooms. The homes include private yards and garages.

Downtown Knoxville and major employers such as Oak Ridge National Laboratory, Covenant Health, Knox County Schools and the University of Tennessee are in close proximity.

“The Knoxville market presented us with a compelling investment opportunity due to its limited housing supply, impressive rent and income growth over the past four years and robust demographics bolstered by the University of Tennessee,” Chris Cordes, director, multifamily investments, PPR Capital Management, told Multi-Housing News.

BTR Group is the general contractor and Greystar will manage the property. The PPR project team includes Cordes as well as Claude Roxborough, General Counsel, and Matt Carfaro, Investment Analyst.

Knoxville BTR surges

Also in the Knoxville area, Batson-Cook Development Co. and Novare Group recently broke ground on a 271-unit garden-style apartment community. Located less than a half-mile from Route 162 and Interstate 40, the first units in the community are anticipated to be delivered early next year.

“Knoxville has seen a surge in the number of people renting homes around the city, as the job market has strengthened, and an influx of new renters moved into the area,” Melanie French, CEO of RR Living, told MHN. “Building communities where people can stay longer without outgrowing their space as their family grows and changes will be positive for owners with lower expenses and higher revenues when turns are reduced, vacancy days are minimized, and revenue maximized.”