A 158-unit apartment building across the street from the Pilgrim’s Pride chicken processing plant in the downtown Chattanooga south neighborhood has been sold for $ 37.5 million.
Capital Square, a Virginia-based real estate company specializing in tax-advantaged investments, brought in 17 Broad, which opened last year at 1701 Broad St.
The deal is Capital Square’s fourth apartment acquisition in Chattanooga, with its chief executive declaring the city poised to be the next Austin, Texas.
Louis Rogers, founder and CEO of the company, said business was bullish in Chattanooga as the area is expected to experience strong growth in occupancy and rents. He cited the location of Chattanooga near Atlanta and Nashville, a substantial growth in the region’s gross domestic product, a low cost of living, and a high quality of life.
The five-story Broad Street complex was sold by JA Murphy Group of Knoxville.
Builder John Murphy said being close to the poultry processing plant is part of city life.
“If people want to be downtown with all the activity, unfortunately they will have to put up with some things not as pleasant as the suburbs,” he said earlier.
The plant and its scent have been a lightning rod for some critics, even as others defend the facility and the jobs it provides.
Murphy said he is building in downtowns of other cities and sees the same kind of tension.
âThe outskirts of the central business districts were light industry,â he said. “Over the past decade that has changed dramatically.”
Across from the chicken factory, across Main Street, the grocer Food City plans to build a new supermarket and housing that is slated to open in 2023. It is the first supermarket. large-scale opening in the downtown core for about three decades.
Food City, based in Abingdon, Va., Is building the first multi-use complex in its long history. The site will house a 53,000 square foot store, a 115-seat food court, 16,000 square feet of retail and office space on two levels and six two-story townhouses.
Austin, Texas is one of the fastest growing metropolitan cities in the country, with more than 570,000 residents, up 34% since 2010, according to US Census Bureau figures released this year. The city is considered to be a bustling technological service city, which it benefited from in the city center.
The 17 Broad Chattanooga building purchased by Capital Square is its third in the city in a year.
According to Capital Square, she specializes in tax-advantaged real estate investments, including Delaware Statutory Trusts for Section 1031 trades and opportunity zone funds that qualify for tax deferral and exclusion.
The company said the acquisition of 17 Broad is in the name of a Delaware statutory investment trust offering that seeks to raise $ 18.4 million in equity from accredited investors.
Since 2012, Capital Square has achieved more than $ 3 billion in transaction volume, according to the company.
Contact Mike Pare at [email protected] or 423-757-6318.