Knox Ridge (University of Tennessee)

2371 Cherokee Ridge Way, Kimberlin Heights, TN, 37920, US

Asset description

Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present Knox Ridge (the "Property"), an 86 unit, 371 bed student housing community located at the University of Tennessee, Knoxville ("UT Knoxville," "UTK," or the "University"). The Property is 99% occupied for the 2024-2025 academic year, its fifth consecutive year of 99%+ occupancy. With pre-leasing surpassing 91% as of April 2025, the asset is on it’s way towards it’s sixth straight 99%+ lease-up. Knox Ridge’s success is driven by it’s unique townhome floor-plans, the only of it’s kind in the market, offering students the most desirable value-proposition in Knoxville in terms of affordability and function. Of properties built in 2016 or later, Knox Ridge offers the third lowest rents per square foot in the entire SEC.

UT Knoxville is one of the fastest growing universities in the nation. The University has added over 9,200 students since 2019, and is expected to add an additional 7,300 through 2030. Demand for student beds is growing much faster than beds are delivering, which has resulted in a 7-year average occupancy of 98%, including 3 consecutive years of 100% occupancy from 2021- 2023. The University is well prepared for continued growth, with $1.6 billion in active infrastructure development and an operating budget of nearly $2.5 billion annually.

Occupancy at Knox Ridge and its local submarket is uncorrelated with new development. From 2018-2021, as the Knoxville market added 2,756 beds, submarket occupancy increased from 97% to 100%, outpacing the wider market each year up to 2021. In 2024, as 1,400 beds delivered, average occupancy remained at 100% and continued to outperform the UTK market. Knox Ridge and its competitors have proven there is significant demand for value relative to rents charged by new supply.

...

Attributes

Units

Beds

371

Year built

2016

Occupancy

99%

Media

Investment highlights

Tier 1, Power 4 University with 6.5%+ Growth; Outstanding Fundamentals

University of Tennessee has quickly become one of the most popular universities in the nation, driven by elite academics, research, and athletics. Enrollment has grown by over 6.5% annually for three years straight to 38,728 students, and expected to surpass 40,000 in 2025. Since 2018, enrollment has grown by 34% as applications have spiked by 229%.

Knox Ridge Performance is Uncorrelated with New Supply

Over the past 7 years, Knox Ridge and its submarket have outperformed the wider University of Tennessee market by averaging 99% occupancy, and occupancy has not been sensitive to new deliveries. Rents at Knox Ridge and its competitors are a significant discount to rents being charged by new supply, suggesting that Knox Ridge is not competing with new construction.

Significant Campus Funding Will Fuel Future Growth

University of Tennessee expects enrollment to grow by more than 6,000 addition students through 2030 to 46,000 in total. Supporting this growth is $1.6 billion in active capital projects along with an annual operating budget of $2.37 billion. Enrollment at UTK will grow faster than new beds are delivered through 2030, keeping fundamentals among the best in the nation.

Upside Opportunities

New ownership will have the opportunity to increase rental and fee income by adjusting policies and upgrading property common areas:
Introduction of 1-time parking charge
Re-purposing of bonus rooms
Upgrades to existing amenities

Lowest Stabilized PSF Rents in SEC Newer Than 2016

Units at Knox Ridge are 3,100 square feet. Units offer huge bedrooms, closets, and common areas. Among properties built in 1995 or later, Knox Ridge, as 2016 vintage product, offers the lowest rent on a per square foot basis in the entire Knoxville market.
Of properties built since 2016, Knox Ridge has the third lowest average rent PSF in the entire SEC.