Newmark Knight Frank Closes $38 Million, Class-A Multifamily Community in East Tennessee Opportunity Zone
KINGSPORT, TN - FEBRUARY 2019 - Newmark Knight Frank announces the sale of Town Park Lofts, a newly-developed 263-unit, Class-A apartment community located in an Opportunity Zone (OZ) of downtown Kingsport, Tennessee. The property sold for $38,300,000 or $145,627 per unit.
Birmingham, Alabama-based Senior Managing Directors Bo Flurry and Justin Uffinger represented the seller and buyer in the transaction. Suwanee, GA-based Crossgate Partners sold the property to Maxus Properties of North Kansas City, MO. With the property located in an Opportunity Zone, Maxus Properties utilized a specialized Opportunity Fund targeting new developments to close the transaction. The property was in the final stages of construction at the time of the sale.
According to Flurry, “We are approximately twelve months into the Opportunity Zone era and everyone is getting their arms around the playbook in order to create the best structure for a transaction. Existing properties and land located in Opportunity Zones are in demand now, and we see this trend continuing to gain momentum.”
Town Park Lofts is proximate to Kingsport's restaurants, nightlife, outdoor dining, and shopping, as well as the area’s major industry leaders including Eastman Chemical, Domtar Paper, and Holston Valley Medical Center. It was constructed in 2018 and features spacious one-, two-, and three-bedroom floorplans with market-leading finishes including stainless steel appliances, kitchen islands, hardwood floors, washer/dryers, and walk-in closets. The Town Park Lofts community features a resort style pool, outdoor entertaining kitchen and courtyard with fire pit, a refreshment bar, resident clubhouse, and pet park. The development is connected to the greenbelt and offers convenient, walkable access to downtown Kingsport.
About Crossgate Partners
Founded in the early 2000s, Crossgate Partners, LLC is a private real estate investment and development firm that finances a wide spectrum of real estate assets, primarily in the Southeast United States. Crossgate Partners invests, manages, and develops a diverse group of real estate assets, including office, retail, multifamily, healthcare, and mixed-use properties.
About Newmark Knight Frank
Newmark Knight Frank ("NKF"), operated by Newmark Group, Inc. ("Newmark Group") (NASDAQ: NMRK), is one of the world's leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF's 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management.