The District Knoxville, TN

Investment Highlights

• Exceptional Location Near Employment, Retailers, & Entertainment
• Incredible Knoxville Multifamily Fundamentals
• $317/ Unit In Significant Premium-Level Renovations To Capture
• ~7% Loss To Lease Can Easily Be Captured 
• $5.36m (~$14,228 Per Unit) Invested In Capital Expenses
• Value-Add Opportunity Through Additional Amenities 
• Prime Location In The Top-Performing West Knoxville Submarket
• Value-Add Via Low-Flow Utility Expense Savings

Exceptional Location Near Employment, Retailers, & Entertainment

Strategically positioned in thriving Knoxville, The District is poised to take advantage of the metro’s young renter demographic.  The University of Tennessee, which boasts a student body of nearly 32,000, is less than ten miles from the property. The District is also near major employers such as Covenant Health, with the corporate office only five miles from the property. Downtown Knoxville is less than ten miles from the property, offering a wide variety of retail and restaurant options for tenants. The District is only a mile from the highway, providing quick connectivity to both entertainment and major employers.

Incredible Knoxville Multifamily Fundamentals

The multifamily fundamentals offered by the Knoxville market provide both stability and growth opportunity for investors. Knoxville boasts an incredibly low vacancy rate of 4.9%. The economic base is diversified, offering a stable environment with a reputation for a low cost of living and a low cost of doing business. This has fueled population growth, contributing to an extremely tight renter market. Even with record amounts of new construction, the market has seen positive YoY annual rent growth as of Q2 2024.

$317/ Unit In Significant Premium-Level Renovations To Capture

164 units (44%) received new LVP flooring, stainless steel appliances, brand new cabinets, tile backsplash, formica countertops, carpet in the bedrooms, fresh paint, updated fans and light fixtures, and tub resurfacing. These upgraded units have market rents that are $80 - $150/unit/month above classic units; however, they should all be taken to the next renovation level by adding granite countertops given the extremely strong and proven demand in the immediate submarket! Adding granite countertops to renovated units will unlock an additional $100-$220+/unit/month in rent upside!

213 units (56%) are classic units offering significant value-add potential. ~5 years ago, 108 of these units were upgraded with cabinets, carpet in the bedroom, vinyl flooring, and black appliances. 

By adding granite countertops in the 164 renovated units and bringing the remaining 213 units to the same premium renovation level, new ownership will increase the effective rent from $1,141 to $1,459. That equates to a $317/unit/month or 28% increase in overall effective rent!

Class C assets in the submarket have demonstrated strong performance with granite countertops, including six out of the eight rent comps in the immediate submarket! The premium units at these properties are achieving $200-$600 higher rents than The District!

Tenant Services