KNOXVILLE, TN—Capstone Apartment Partners has closed the $12.5 million sale of The Adelade: a 109-unit garden-style apartment community situated in a Qualified Opportunity Zone in South Knoxville, Tennessee.
Capstone’s Adam Klenk, Tyler Mayo, Luke Searcy, and Jordan Arand sold the property on behalf of Nashville-based Aerial Development Group. The buyer, Moneil Investment Group, plans to implement a light value-add program and modernize unit interiors.
“Capstone is thrilled to have closed another transaction in the Knoxville MSA in 2021. The city’s incredible year-over-year rent growth has continued to bring our West Coast buyers to Tennessee in search of higher yields,” said Klenk.
The Adelade underwent significant renovations in 2019 in which Aerial Development Group invested over $3.7 million into CapEx at the property and added a resort-style swimming pool and brand-new eight-unit building. In addition to including eight new apartment units, the building houses the clubhouse and game room, innovation center, fitness center, management office, and 11 climate-controlled storage units.
Originally built in 1967, The Adelade is comprised of studio, one-, and two-bedroom apartment homes with below-market rents. The partially renovated units are primed for light value-add program, and an extraordinary amenity package is already in place. The Adelade was approximately 97% occupied at the time of closing.