CHICAGO & KNOXVILLE, TENNESSEE — Core Spaces, Schenk Realty and Kayne Anderson Real Estate announced the closing of a $233.3M construction loan to finance the development of Hub Knoxville, a multi-tower, nearly 2,000-bed purpose-built student housing project located in the heart of Knoxville, Tenn.
TSB Capital Advisors acted as the financial advisor on the transaction.
PNC Bank acted as the administrative agent and PNC Capital Markets LLC acted as the joint lead arranger. Truist acted as a joint lead arranger and syndication agent, and Webster Bank and Bank United also participated in the credit facility.
“Today’s market conditions present unique challenges for a project of this scale. We’re thrilled to partner with Schenk Realty and continue our long-standing equity relationship with Kayne Anderson, and to have worked with this dynamic group of lenders to deliver the most exciting project yet at the University of Tennessee,” said Andrew Wiedner, Executive Managing Director and Chief Capital Officer at Core Spaces. “We’ve had our eye on Knoxville for years, and we’ve worked closely with the city to create an electrifying project that will not only provide additional housing to the growing market, but also bring additional restaurants and retail to serve the community and UT students.”
“We’re excited to bring Hub Knoxville, the latest development in a growing tenure together, to life with our exceptional partners at Core Spaces. We could not have worked with a better team in Core Spaces and TSB to secure debt in today’s market, and our teams served as true complements to each other to secure our bank syndicate, negotiate a favorable structure, and work towards a rapid close,” said Brian Cannella, Senior Managing Director of KA Real Estate.
Located along Cumberland Avenue near the University of Tennessee, Hub Knoxville will feature three towers, including two 10-story buildings and one 7-story building, with a total of approximately 600 units and nearly 2,000 beds in studio through five-bedroom floor plans. The mixed-use development will also feature an estimated 30,000 square feet of retail space and a roughly 1,800-stall parking garage. Through a partnership with Covenant Health, Hub Knoxville’s parking garage will provide essential parking spaces dedicated to the Fort Sanders Regional Medical Center and East Tennessee Children’s Hospital. Spanning over four acres, this project marks the largest student development in Knoxville’s history and will greatly contribute to the transformation and revitalization of “The Strip,” the city’s main hub downtown.