BERWYN, PA — PPR Capital Management (PPR), a private equity real estate investment firm, has announced the $87 million acquisition of Highline at Knoxville, a newly constructed build-to-rent (BTR) community in Knoxville, TN. This marks PPR’s first foray into the rapidly growing BTR sector and its second investment in Tennessee, following the acquisition of a Nashville multifamily asset in May 2024.
The Highline at Knoxville project includes Phase I, featuring 110 detached homes currently leasing, and Phase II, which will add 151 townhomes and detached homes. This strategic acquisition aligns with PPR’s vision to diversify its portfolio with high-potential assets providing quality housing in high-demand markets.
“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,” stated 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.”
PPR partnered with Center Creek Capital Group (Center Creek), a real estate investment and development firm, to acquire the property. The deal involves a total equity investment of $26.6 million, with PPR as the primary equity partner contributing $25 million, representing 95% of the investment. The homes have been designed to meet evolving consumer demands, offering private yards, garages, and three- or four-bedroom layouts set at market rent.
Chris Cordes, Director of Multifamily Investments at PPR, highlighted the significance of this acquisition. “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.”
The first phase of the project was delivered in 2023 and is expected to achieve operational stabilization by the end of Q2 2025. Phase II construction is set to commence immediately, with delivery planned in tranches between 2026 and 2027. PPR will focus on asset surveillance while Center Creek serves as General Partner, BTR Group oversees construction, and Greystar manages the property.
“Build-to-rent communities like Highline are part of our investment strategy to offer quality rental opportunities to households at a time when mortgage rates have made it harder to buy a home,” said Dan Magder, Managing Partner of Center Creek. “We are excited to partner with PPR on the acquisition and look forward to growing our footprint together in the BTR space, offering attractive risk-adjusted returns to investors.”
The addition of Highline at Knoxville signals a new chapter for PPR, expanding its portfolio and strengthening its position in a competitive market. With 261 homes set to deliver over the next three years, the Knoxville project underscores PPR’s commitment to strategic growth and meeting the needs of today’s renters.
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