303 Flats
Knoxville, TN
Acquisition: September 2021
YOC: 2018
Units: 139
Beds: 433
Asset Type: Mid-Rise
Distance to Campus: 0.7 Miles
Strategy: Core Plus
Disposition: April 2023
Story
Part of the first wave of “modern” student housing assets delivering in Knoxville, and the first to be located immediately across the Henley St. Bridge, 303 Flats was originally built as a bet on continued city expansion to the east.
Challenges
An existing relationship with the developer allowed the team to gain operational control and a minor interest in the asset in 2019 before gaining full ownership in 2021. Renovations focused on space maximization and development of an effective pricing strategy this new asset in a unique location were early keys to success. Uncertainty during the pandemic forced RCP to examine more creative ways to maintain cash flow using a combination amenity monetization, cost savings, and leasing partnerships.
Result
As UTs explosive growth tightened the market, pricing strategy focused less on driving occupancy and more on the timing of driving rates. Effectively anticipating supply shortfalls and accurately projecting the accompanying increases in leasing velocity also allowed for effective communication of any shifts in strategy to the leasing team in time to take full advantage of each year’s increasingly favorable dynamics.