New Entry in Build-to-Rent
Another investment firm enters the Build-to-Rent frey as PPR Capital Management acquires Highline at Knoxville, a newly built BTR community in Knoxville, Tenn. PPR paid $87 million for the project that includes both the existing Phase I consisting of 110 detached homes currently in lease-up, and Phase II that will feature 151 townhomes and detached homes. PPR partnered with Center Creek Capital Group on the acquisition.
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.
While the Highline at Knoxville represents PPR’s first build-to-rent investment, it is the firm’s 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
“This acquisition marks a pivotal moment in PPR’s strategic growth as we enter the build-to-rent sector, which aligns with our disciplined investment framework of balanced risk and sustainable returns,” said Steve Meyer, CEO of PPR Capital Management. “We’re executing our vision to diversify our portfolio with high-potential assets while maintaining our commitment to creating value for investors. This first step into the build-to-rent space positions us for similar opportunities across growing markets as we continue to evolve our investment strategy.”
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.
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.”
Reported by Company Press Release