#Knoxville #United States #build-to-rent #PPR Capital

PPR Capital Management's Strategic Move in Knoxville

PPR Capital Management, a noted player in the private equity real estate investment sector, has made headlines with its recent acquisition of a significant asset in Knoxville, Tennessee. This comes in the form of Highline at Knoxville, a newly developed community specifically designed for the build-to-rent (BTR) market. The landmark deal, valued at $87 million, not only showcases PPR's ambition to diversify its portfolio but also its keen interest in the burgeoning rental market.

Details of the Acquisition

The acquisition includes both Phase I of the development, which consists of 110 detached homes that are currently in the process of being leased, and Phase II, which will introduce an additional 151 townhomes and detached homes designed for future residents. This dual-phase approach symbolizes a robust investment strategy aimed at meeting the rising demand for quality rental housing in Knoxville.

Partnering with Center Creek Capital Group, a known entity in real estate investment and development, PPR is firmly positioned in this venture. The firm has committed $25 million, representing 95% of the total equity investment of $26.6 million, highlighting its serious commitment to this investment opportunity.

Why Build-to-Rent?

The entrance into the build-to-rent sector marks a strategic pivot for PPR as they look to navigate a challenging housing market influenced by rising mortgage rates and economic fluctuations. Steve Meyer, CEO of PPR Capital Management, articulated that this acquisition is more than just a transaction; it signifies a transformational step in PPR's growth narrative. Their intention is to create value for investors while addressing significant housing needs within the community.

“The build-to-rent sector aligns perfectly with our disciplined investment framework, allowing us to provide high-quality housing options while yielding sustainable returns,” Meyer stated.

Timeline and Future Developments

Highline at Knoxville is expected to stabilize by the end of the second quarter in 2025, with Phase II construction starting promptly. This strategic decision to roll out both phases speaks volumes about PPR’s confidence in the potential of this market. Throughout this process, PPR aims to ensure meticulous oversight of asset management while also leaning on their partners for construction and property management.

Chris Cordes, Director of Multifamily Investments at PPR, has underscored the importance of this acquisition as an ideal entry point into the BTR market. The consolidation of both development phases enhances their ability to optimize returns for investors and firmly establish their presence in Knoxville's rental landscape.

Industry Perspective

Dan Magder, Managing Partner at Center Creek, expressed enthusiastic support for the partnership, emphasizing the role of build-to-rent communities in providing quality living spaces during a period when purchasing homes is becoming increasingly unaffordable for many. This acquisition represents a forward-looking approach to real estate investment that aligns with current socio-economic trends.

With this strategic acquisition, PPR Capital Management not only diversifies its investment portfolio but also sets a benchmark in building sustainable, community-oriented housing solutions. Their entry into the BTR market is poised to replicate success across similar growth markets in the United States.

About PPR Capital Management

Founded in 2007, PPR Capital Management has carved out a niche in the private equity real estate landscape, focusing on distressed assets and high-potential properties across the nation. Their aim is to achieve financial wellness for their investors while positively impacting the communities they engage with. As they embark on this venture in Knoxville, the firm continues to reassert its commitment to innovation and sustainability in real estate investment. To learn more about their endeavors, visit pprcapitalmgmt.com.