University of Tennessee Student Housing Asset Changes Hands
Realco Capital Partners sold the Knoxville project to Horizon Realty Advisors.
Seattle-based Horizon Realty Advisors has acquired 303 Flats, a 138-unit, 431-bed Class A student housing property located near the University of Tennessee in Knoxville, Tenn., from Realco Capital Partners of Stamford, Conn.
JLL Capital Markets arranged the acquisition financing, a five-year, fixed-rate loan through Northwestern Mutual, Horizon’s behalf. The loan amount and purchase price of the property at 303 W. Blount Ave. could not immediately be learned. The JLL team was led by Managing Director Jake Wisness, Director Kaden Eichmeier and Analyst Bill Maloney.
Wisness, in a prepared statement, noted that despite volatility in the debt capital markets, the team was able to secure best-in-market loan terms through a competitive process.
CBRE arranged the sale of the property. Jaclyn Fitts, William Vonderfecht and Casey Schaefer with CBRE’s National Student Housing team represented the seller in partnership with Brett Carr from CBRE’s Nashville office. It was the second student housing deal at the University of Tennessee that CBRE’s National Student Housing team executed in recent weeks. The firm recently brokered the sale of TENN, a 603-bed student housing community adjacent to the University of Tennessee.
The 303 Flats property is located south of the UTK campus, along the Tennessee River, and offers residents quick access to Neyland Stadium and downtown Knoxville. Completed in 2018, the building offers a mix of one-, two-, three- and four-bedroom units with bed-bath parity. The units have modern kitchens, vinyl plank flooring, contemporary furniture, washers and dryers, high-speed internet, 50-inch televisions, smart locks and walk-in closets.
Community amenities include a resort-style pool, 24-hour fitness studio, yoga studio, outdoor kitchen and grills, game lounge, individual and group study lounges, computer rooms, a business center with free printing, bicycle storage, a dog park, pet wash stations and reserved parking.
Located on the east side of campus, the property is a 10-minute drive from all university buildings, including the Student Union, VolShop, McClung Plaza, Thompson-Boling Arena, the College of Nursing and the College of Engineering. A pedestrian and bicycle bridge across the Tennessee River will soon be constructed, offering additional cyclist and pedestrian access between both sides of the river. The bridge, located two blocks from 303 Flats, will connect Clancy Avenue on the south side to the pedestrian trail on the north side between the Thompson-Boling Arena and Pratt Pavilion.
Vonderfecht, a senior vice president at CBRE, said in a prepared statement the university’s full-time undergraduate population grew more than 23 percent over the last five years. He further noted that the student housing property was one of the fastest leasing assets in the market for the 2022-2023 academic year and is already 100 percent preleased for the 2023-2024 academic year.