TruAmerica Enters Chattanooga Market

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The company acquired a 226-unit property completed in 1988.

Ridgemont at Stringers Ridge. Image courtesy of TruAmerica Multifamily

Ridgemont at Stringers Ridge, a 226-unit multifamily community, is TruAmerica’s first investment in Chattanooga and its third in Tennessee this year so far. CBRE marketed the property and assisted the sale on behalf of the sellers.

The property last traded in 2018, when the current sellers, Timberland Partners and LEM Capital, acquired it for nearly $21 million, Yardi Matrix data shows.

According to Matt Ferrari, Co-Chief Investment Officer at TruAmerica, Chattanooga meets all the requirements the firm looks for in a multifamily market. Among the factors, TruAmerica valued affordability and strong in-migration.

Completed in 1988, the community comprises one- and two- bedroom apartments ranging from 732 to 1,005 square feet. The property, located just off Route 27, is some 2 miles north of downtown Chattanooga, providing easy access to the city’s largest employers and amenity centers, as well as parks and nature preserves. 

Ridgemont, located at 20 Mason Drive, is 1 mile north of Stringers Ridge Park and 2 miles south of Chattanooga Memorial Park. The property, which is also the only community that has a Stringers Ridge trailhead, is situated some 3 miles north of the University of Tennessee at Chattanooga. Ridgemont is served by the Hamilton County School District.

The North Shore submarket, where Ridgemont is located, offers several restaurants, bars and shops, and has recorded more than 20 percent population growth over the last decade, primarily due to Millennial migration, according to CBRE research.

Growing city, growing buyer

Chattanooga is the second fastest-growing big city in the state. Employment opportunities have brought new residents in, creating a need for quality housing. The resident influx in Chattanooga is also a result of the low cost of living, economy and job opportunities, with several companies entering the market. The list includes Cigna, Northwestern Mutual, Tennessee Valley Authority and Erlanger Health System.

TruAmerica continues to be one of the most active multifamily companies in the U.S. Just last quarter, the firm acquired 3 communities in Las Vegas, Salt Lake City and Tampa for a total of $209 million. 

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