KNOXVILLE, TN—Capstone Apartment Partners has closed the $11 million sale of The Gardens at Knoxwood: a 99-unit apartment community located in East Knoxville, Tennessee.

Capstone’s Adam Klenk, Tyler Mayo, and Jordan Arand sold the property on behalf of Knoxville-based Knoxwood Holdings, LLC. The buyer is Austin-based GVA, who plans to modernize unit interiors and harness Knoxville’s organic rent growth.

“Capstone is thrilled to have closed another transaction in the Knoxville MSA in 2022. The city’s incredible year-over-year rent growth has continued to bring out-of-state buyers to Knoxville in search of higher yields,” said Klenk.

Built in 1969 and renovated in the last few years, The Gardens at Knoxwood is comprised of one-, two-, and three-bedroom apartment homes with below-market rents, partially renovated units primed for value-add, and the ability to enhance the amenity package. The community was approximately 98% occupied at the time of closing.