South Knox Apartments Change Hands In $42M deal

An Atlanta-based real estate investment firm has acquired an 840-bed student housing complex in South Knoxville for $42 million.

QR Capital purchased Quarry Trail Apartments in a joint venture with Militello Capital, a Washington, D.C.-area private equity investment firm.

“We are excited to expand our real estate portfolio with the acquisition of Quarry Trail,” said Matt Brady, co-founder and chief operating officer of Militello Capital. “The property is one of the nicest communities serving the students at University of Tennessee, and will benefit from both the growth of the university as well as our planed operational improvements.”

It’s the second multimillion dollar deal for student housing in recent months, following a nearly $20 million sale of The Heights of Knoxville, also in South Knoxville, in May.

Quarry Trail, located between Edington Road and Cherokee Trail, was built in 2008 and is a mix of fully furnished one, two, three and four-bedroom apartments aimed at students attending the University of Tennessee.

Apartments range from 583 square feet for a one bedroom to 1,520 square feet for the largest four-bedroom unit. Rents start at $910 for a one bedroom and drop to an initial $500 per person in the four bedroom space.

Amenities include a clubhouse with a movie theater, fitness center and tanning beds; three pools; a volleyball court and putting green; as well as shuttle service to campus. In a nod to the preferences of its target demographic, larger units include one bathroom per bedroom.

The purchase marks the Militello Capital-QR Capital joint venture’s largest acquisition to date and is its eighth multifamily investment.

QR Capital operates 15 properties across the Southeast, including three in Nashville.

By Knoxville News Sentinel

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