North Shore has 506 multifamily units in two housing clusters. It enjoyed a high occupancy rate of about 98%, as rents were lower than in competing properties.
Chattanooga's low unemployment rates and 3% annual growth in the labor market make it an attractive city. Furthermore, Volkswagen invested $600 million in the creation of a huge plant within commuting distance of this property.
We realized this asset's upside potential in two stages. First, we significantly increased rent. Then, after renovating 35% of the units and demonstrating the potential for a further hike in rental fees, we sold the property for a return of 19% IRR.