KNOXVILLE, TN – Capital Square, a leading national sponsor of tax-efficient real estate investments and an active developer of multi-family communities, announced the acquisition of Village at Westland Cove, a 240-unit Class A multi-family community in Knoxville. , Tennessee . The community was acquired in the name of CS1031 Village of Westland Cove Apartments, DST.
“This is Capital Square’s sixth acquisition of a multi-family community in Tennessee for the DST/1031 exchange program,” said Louis Rogers, Founder and CEO of Capital Square. “Village at Westland Cove is located in one of the nation’s hottest real estate markets for 2021. Employment in the area is exceptionally strong, with the Oak Ridge Reservation and National Laboratory, operated by the U.S. Department of Energy, just 19 miles away, generating 14,667 full-time jobs and salaries totaling over $1.3 billion.”
Completed in 2019, Village at Westland Cove is located at 9635 Westland Cove Way along Interstate 140. The 28.2-acre luxury multi-family community sits on the shore of scenic Fort Loudoun Lake. It offers one-, two-, and three-bedroom units averaging 1,147 square feet with best-in-class amenities. Community features include a state-of-the-art fitness center, Amazon lockers and coolers for grocery deliveries, a car service center, two pet play areas, a cafe, a business, food truck evenings, a game terrace with pétanque court, outdoor fireplace, outdoor kitchen, club house, swimming pool, kayaks available to residents, as well as access to the lake via a resident dock.
Village at Westland Cove is located near The Pinnacle at Turkey Creek, a 650,000 square foot shopping center that includes over 65 retail stores and restaurants. The property is in the 10th hottest real estate market in the country for 2021, with a 55% increase in value over 5 years, according to Zillow Group. Turkey Creek Medical Center, a Level III trauma center that is part of Tennova Healthcare, is less than two miles from the property. Further along I-140 and I-40 are attractions such as the Knoxville Art Museum, Market Square, and the Knoxville Zoo.
The Oak Ridge Reservation, operated by the US Department of Energy and home to the Oak Ridge National Laboratory, is approximately 19 miles from the village of Westland Cove and is the area’s largest employer. According to the East Tennessee Economic Council, approximately 14,667 full-time jobs were directly provided by the DOE and its major contractors in Tennessee in 2020, with annual wages and salaries totaling nearly $1.311 billion. WBIR.com reports that Bill Lee, Governor of Tennessee, recently announced a $72 million budget for the UT-Oak Ridge Innovation Institute, a collaboration between the University of Tennessee and Oak Ridge National Laboratory, in the goal of attracting and retaining science, technology, engineering and math (STEM) talent in the Knoxville area.
“Village at Westland Cove is an exceptional multi-family property located in an idyllic setting with luxury amenities throughout,” said Whitson Huffman, Chief Strategy and Investment Officer. “The local economy is thriving, with low unemployment, high average household incomes and growing demand for high-end apartments, such as those available to residents of Village at Westland Cove.”
Esri data shows that the average household income within three miles of the property is around $130,000. According to Yardi Matrix, Knoxville rental rates are rising with demand, with year-over-year rent growth of 18% and an average occupancy rate of 98.1% as of March 31, 2022.
The Bureau of Labor Statistics reports that Knoxville has seen an increase of more than 19,000 job openings since February 2021, with the unemployment rate reaching 2.8%. According to the BLS, job opportunities in the area are expected to continue to grow, with 3M announcing plans to invest approximately $470 million to expand its manufacturing facility in Knoxville MSA, creating 600 new worker jobs. here 2025.
Taylor Bird, Nelson Abels, Robert Stickel and Alex Brown of Cushman & Wakefield represented the seller.
Bird, Executive Director of Cushman & Wakefield, said, “The Village at Westland Cove offers a truly unique asset combined with an unparalleled suite of amenities, interior finishes and beautiful water views.