PPR Capital Management Announces First Build-to-Rent Acquisition in Knoxville, Tennessee

Strategic $87 million investment launches firm's expansion into the growing build-to-rent sector

BERWYN, Pa., March 24, 2025 /PRNewswire/ -- PPR Capital Management (PPR), a private equity real estate investment firm, announced the acquisition of Highline at Knoxville, a newly constructed build-to-rent (BTR) community in Knoxville, TN. 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 (Center Creek), 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.

"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. 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."

"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."

In addition to Christopher Cordes, the PPR project team includes Claude Roxborough, General Counsel, and Matt Carfaro, Investment Analyst.

About PPR Capital Management
PPR Capital Management is a private equity real estate firm that manages investment offerings which primarily invest in distressed assets and mortgages, as well as residential and commercial real estate throughout the United States. Founded in 2007, PPR's mission has been to provide financial wellness to our investors while making a positive social impact on the communities in which we invest, live, and work. For more information, please visit our website at pprcapitalmgmt.com.

SOURCE PPR Capital Management