When PPR acquired Highline at Knoxville in March 2025, it marked the firm’s first entry into the build-to-rent (BTR) sector and a defining milestone in our dedicated BTR strategy. The 261-unit community in Knoxville, Tennessee is precisely the type of asset PPR targets, one with the fundamentals to generate durable, long-term returns. Within the first year, the data is proving out our thesis. Phase I has rapidly stabilized, exceeding 95% occupancy and 60%+ resident retention. Phase II construction is actively underway and has already welcomed its first residents.
A Strategic Entry into BTR
Knoxville is among the clearest examples of how the homeownership gap plays out on the ground. The metro area’s population reached 807,000 in 2025 according to MacroTrends, up more than 4% in three years, driven by the University of Tennessee and major new employers. That economic momentum has translated into a 6.2% increase in regional payroll employment since 2020, per the National Association of Realtors, bringing a steady influx of residents who need housing.
Yet housing supply has not kept pace with that momentum. According to the Federal Housing Finance Agency’s House Price Index, home values in the Knoxville MSA rose 4% year-over-year through the third quarter of 2025, continuing a multi-year run of appreciation that has outpaced wage growth. For the families and young professionals that the region continues to attract, homeownership is increasingly out of reach. Highline’s 261 homes are purpose-built to serve that gap.
What Makes Highline Stand Out
Highline’s three- and four-bedroom homes feature private yards, attached two-car garages with direct home access and individual driveways, and a combination of space and privacy that traditional apartment communities cannot replicate. Interiors are finished with stainless steel appliances, granite countertops, vinyl plank flooring and in-unit washers and dryers, and residents enjoy the luxuries of an on-site fitness center and resort-style pool.
Beyond the in-home comforts, the community supports residents’ physical and social wellbeing. Natural greenspace encourages outdoor activity, a dog park accommodates pet-friendly lifestyles and a clubhouse serves as a hub for gatherings. Curated monthly events and weekly K-6 tutoring programs further invest in the resident experience, amenities that directly drive resident satisfaction and long-term retention.
Highline’s influence extends beyond its immediate residents. By demonstrating that purpose-built rental communities can match for-sale development quality, the property challenges rental housing stigmas and elevates market standards. Greystar’s property management and Center Creek Capital’s oversight as project sponsor and asset manager, combined with well-maintained grounds, create positive spillover effects on surrounding neighborhoods. High retention rates are expected to drive institutional demand and encourage expanded supply over the longer term.
More Value for Investors
The Highline acquisition featured a dual-phase structure, which simultaneously captured 110 completed homes in Phase I, as well as 151 additional units to be delivered in Phase II throughout 2026 and 2027. The transaction required sophisticated underwriting that balanced lease-up performance against development risk, creating the opportunity for PPR to structure favorable terms and secure control over the community’s complete development trajectory.
This structure also produces a more predictable return profile for our investors. Phase II is being built into an established community where documented lease-up performance, rent levels and resident demand continue to sharpen our underwriting. Phase II lease-up began during construction, compressing the time between capital deployment and stabilized cash flow. When complete, owning all 261 units at scale positions us for a stronger exit, one that appeals to a broader pool of institutional buyers than either phase could attract on its own.
The Bottom Line
Highline at Knoxville is a tangible expression of the disciplined, market-driven strategy PPR executes every day on behalf of our investors. By entering the BTR sector in a market with strong fundamentals and resilient housing demand, we have expanded our portfolio in a way that pairs durable rental cash flow with a clearer path to a stronger institutional exit. This puts high-quality rental homes within reach of families and young professionals priced out of buying in the communities where we invest. It is another step in our broader mission of prosperity with purpose, and a reminder of why disciplined, market-driven investing remains at the core of everything PPR does.
