Investors Purchase Tennessee Apartment Portfolio
The 192-unit acquisition keeps current residents under Section 42 affordability protections.
Updated on Oct. 26, 2026 in Real Estate — General
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Western Wealth Capital and FSO Capital Partners have acquired a 192-unit multifamily portfolio in Tennessee for $20.7 million. These properties remain under Section 42 Low-Income Housing Tax Credit (LIHTC) Land Use Restriction Agreements.
Why it matters
The acquisition highlights investor interest in Tennessee housing markets where LIHTC properties provide long-term operational stability. Renters in these communities should see continued affordability requirements due to the existing land use restrictions tied to the properties.
The $20.7 million deal covers two properties with 192 total units. The transaction includes an $8.47 million loan at a 6.17 percent interest rate and the assumption of a $7.79 million mortgage at a 4.60 percent rate.
The players
Western Wealth Capital
An investment firm that manages residential real estate portfolios and acquires multifamily housing assets.
FSO Capital Partners
A private equity firm that partners with real estate investors to acquire and operate housing developments.
Northmarq
A commercial real estate capital services company that arranges financing and loans for multifamily property acquisitions.
CBRE
A global commercial real estate services firm that brokers transactions for large residential property portfolios.
The details
The portfolio acquisition includes River City North in Chattanooga and Meadow Creek in Goodlettsville. Financing for the purchase involved a new fixed-rate loan and the assumption of an existing lower-interest mortgage. Because both properties operate under Section 42 LIHTC agreements, they are legally bound to rent-control and income-eligibility requirements for tenants.
Timeline
Meadow Creek was constructed in 2003.
River City North was completed in 2007.
The acquisition of the apartment properties closed in October 2026.
Money Landscape
This acquisition follows the regulatory framework established by the Section 42 Low-Income Housing Tax Credit. The deal marks a continuation of institutional investment in properties governed by federal affordability mandates.
Tenants currently residing in River City North or Meadow Creek should see no immediate changes to their lease terms, as the properties remain under existing regulatory agreements. If you are seeking affordable housing, you can contact the property management offices directly to inquire about income-eligibility requirements.
The takeaway
The acquisition confirms that established Section 42 properties remain a target for institutional investors seeking stable, regulated markets. Residents should continue to review their current lease agreements for any notices regarding property management transitions or compliance certifications.
Further reading
For broader trends in property investment, see our coverage of Real Estate — General.
Source note: This article includes information reported by Chattanoogan.
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