PPR Capital Management (PPR), a private equity real estate investment firm, acquired Highline at Knoxville, a newly constructed build-to-rent (BTR) community in Knoxville, Tennessee.
This strategic $87 million acquisition encompasses both Phase I, consisting of 110 detached homes currently in lease-up, and Phase II, featuring 151 to-be-developed townhomes and detached homes. PPR partnered with Center Creek Capital Group, a real estate investment and development firm, on the acquisition.
The Highline at Knoxville represents PPR’s first build-to-rent investment, and second property in Tennessee, following the May 2024 acquisition of a value-add multifamily asset in Nashville. The deal structure includes a total equity investment of $26.6 million, with PPR contributing $25 million (95% of equity) as the primary equity partner. All units feature private yards, garages, and three or four bedrooms, offering residents high-quality housing options in a market with significant demand. The property will offer units at market rent and is forecasted to complete its three-year development and stabilization plan according to schedule.
The investment aligns with PPR’s strategic approach to market selection and value creation. Phase I, delivered in 2023, is expected to stabilize by the end of Q2 2025, while Phase II will commence construction immediately with delivery scheduled in tranches during the 2026-2027 period. PPR’s role will be to provide the main equity investment and focus on asset surveillance of the property, while partnering with Center Creek as General Partner, BTR Group as General Contractor, and Greystar for Property Management.
Chris Cordes, Director, Multifamily Investments at PPR Capital Management, added, “The Highline at Knoxville opportunity emerged as an ideal entry point into the build-to-rent segment, allowing us to leverage our multifamily expertise while diversifying our portfolio. What began as participation in Phase II evolved into acquiring both phases, significantly strengthening our exit strategy and value creation to our investors upon stabilization by appealing to a broader buyer pool.”
In addition to Cordes, the PPR project team includes Claude Roxborough, General Counsel, and Matt Carfaro, Investment Analyst.
