Nashville-based Material Ventures has purchased the last of three parcels that make up Burnside, a mixed-use community located off Central Avenue in Chattanooga.
Once fully developed, the project will create more than $37 million in asset value across three buildings and 43 townhomes.
Material Ventures purchased the apartment complex, which includes 33 apartments, Number 10 Steakhouse and 17,000 square feet of additional unfinished space. This is the company’s first investment in the Chattanooga market.
“I’m most interested in properties that have unique history and character,” says Tim Johnson, principal and founder of Material Ventures. “The unfinished space at Burnside is full of possibilities we’re excited to explore.”
SEI Properties initially purchased the 6 acres of abandoned industrial property in 2016. Towson Engsberg and DeDe DuBose Engsberg, the principal owners of SEI Properties, made an offer on the property the day it went up for sale.
“I’d run past this property for years and always thought it had tremendous potential,” says Engsberg. “Initially, we couldn’t gather much interest from banks, but we assembled the right team of visionaries, and Renasant Bank in Atlanta truly partnered with us. They saw everything the place could offer.
“We hope the success of the project will encourage other investors and banks to see the value of taking a creative approach – restoring, cleaning and fixing these old sites – rather than ignoring them or knocking them down.”
GreenTech Homes previously purchased part of the property after SEI Properties completed the site work. The master-planned community will include 43 townhomes, green space, firepits, community seating and a dog park.
GreenTech Homes will expand and open its headquarters in the Burnside community with the purchase of the third standalone building. They will convert the 17,000-square-foot building to office space and a design studio.
The first two phases of the townhomes are presold. GreenTech Homes will release the third set of townhomes for presale later this year. The designs include a mix of two and three-bedroom units, some with balconies and all with two-car garages.
In 2021, Method Architecture purchased a 5,000-square-foot building on the property and converted it into office space for the firm.
DeDe DuBose Engsberg and Towson Engsberg have long invested in the Southside, including projects at 55 E. Main, 509 E. Main, 309 E. Main and 1501 E. 16th Street, as well as projects in St. Elmo and East Chattanooga.
Their partners are Nathan and Doug Kirkman of DNK Development.
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Source: Burnside