Building Thriving Communities in Tennessee: Villas at Sevierville

At DLP Capital, we’re doing more than bringing double-digit returns to investors–we’re making an extraordinary impact on America’s affordable housing crisis, one community at a time.?

Our focus has long been on growth markets in the Sun Belt region, including Tennessee, where we’ll be hosting our Building an Extraordinary Family event in June. Today we want to spotlight one of our development projects in this beautiful state, set to bring over 300 multifamily units to a submarket of Knoxville, TN, an area experiencing substantial growth and increased demand for attainable rental housing.

The Villas at Sevierville exemplifies our mission of building thriving communities that are clean, safe, and affordable for families from all walks of life. Best known as home to Dollywood, Tennessee’s most visited attraction, Sevierville is a dynamic suburban market with a diverse economy. Nestled on 18 acres of land, this development will bring much-needed units to a market with a 98.3%* multifamily occupancy rate and 8.1%* rent growth.

Each of the 300+ 1, 2, and 3 bedroom units will be built per Class A standards with coveted features, including stainless steel appliances, granite countertops, and in-unit laundry, just to highlight a few. At the center of the community will be a nearly 6,000-square-foot modern clubhouse, offering top-of-the-line amenities to enrich the lives of residents.?

DLP Capital is partnering with Compass Ventures , one of the area’s leading developers and a DLP Elite Member, on this exciting project. Notably, the Villas at Sevierville will be part of Tennessee’s PILOT program, affording a significant tax benefit: no property taxes owed during the first 10 years of operation and only half for the following 10-year period. This unique tax benefit will have a positive effect on net operating income for the property once open, which could mean enhanced returns for investors.

Between 2018 and 20221, an impressive 336,000 people made the move to Tennessee–and it’s not hard to see why. The state boasts a robust economy that offers job seekers a range of employment opportunities without a state income tax on wages or salaries. It’s also one of the nation’s premiere cultural and entertainment hubs, renowned for its rich musical heritage and attractions like the Great Smoky Mountains National Park.?

With this popular Sun Belt state on track to continue its growth, here are some of the demand drivers we believe spell opportunity for DLP Capital investors.?

• Rising Home Prices: Home prices in Tennessee, which already sit above the historic average, are forecasted to grow 3.6%** in 2024, with mortgage rates showing no signs of cooling down from their own historic highs. This means many new residents may find themself priced out of home ownership and looking for attainable rental housing instead.?
• Tight Rental Market: The multifamily occupancy rate in the Knoxville area, where our Villas of Sevierville project is underway, remains among the highest in the country. It’s expected to hold at over 96% in 2024**, driving demand for new delivery.??
• Rent Growth: Limited vacancies are expected to exert upward pressure on rent prices in the Knoxville area. Higher rents can drive up net operating income, which may mean higher returns for investors.?

We’re excited about what the future holds for our upcoming projects in Tennessee and the Sun Belt region. As an existing investor, you know the value DLP Capital brings to not only our investors but the communities in which we build. We thank you for your continued trust and support as we make an impact, one community at a time.

Ready to Invest?

Schedule your one-on-one meeting with a member of our highly experienced Investor Success Management team.

Sources:

* https://www.neilsberg.com/insights/tennessee-population-by-year/

** https://www.etnrealtors.com/2024/02/01/2024-forecast-report