1. Proven Rent Growth with Remaining Value-Add Upside

• Gross rental income grew from $141K (Mar-24 T-12) to $221K annualized on the current rent roll, 57% over two years as the renovation program worked through the building.
• 16 of the 17 units have been renovated with the latest units leasing at $1,250. The property is 94% leased with no existing concessions. The one remaining unit carries the same upside through the completion of the interior renovation program.
• At an average in-place rent of $1,086 against a $1,250 market rent, there is roughly $164 per unit to capture through completion of the interior renovation program and increasing the remaining units to market rates.

2. Constrained Supply, Strengthening Fundamentals | Chattanooga MSA

• Chattanooga’s multifamily construction pipeline has thinned dramatically. As of Q3 2025, only three properties totaling 556 units were actively under development across the entire MSA, representing just 2% of metro inventory, with the bulk of that activity concentrated in urban infill near downtown rather than the broader metro.
• Stabilized apartment assets in the Chattanooga metro are running at approximately 8% vacancy, with the 2026 market forecast calling for occupancy improving to 91.9% and rent growth returning to approximately 1.7% as the market absorbs the 2024 supply peak.
• The Chattanooga MSA reached a population of 588,050 in 2024, up from 562,647 in the 2020 Census, a gain of over 25,000 residents. More than 266,000 millennials aged 25 and older live within an hour of downtown, providing a durable renter demand base well into the next decade.
• Chattanooga Metropolitan Airport is the fastest-growing small hub airport in the United States, posting a 32% increase in seat capacity in Q3 2025 against a 4% national average for small hubs. Passenger traffic is up 41% since 2023, with a $35 million parking expansion breaking ground in 2025 to accommodate rising demand.

3. Regional Employment Depth | Catoosa County on the Rise

• The Chattanooga MSA’s employer base is unusually deep for its size. BlueCross BlueShield of Tennessee (6,607 employees, the metro’s largest employer), Erlanger Health System (6,000), Volkswagen Chattanooga (~4,500), CHI Memorial, TVA, McKee Foods, and Amazon span healthcare, manufacturing, finance, and logistics, providing the workforce density that underpins housing demand throughout the metro.
• Cloud Springs I-75 Park, a $100 million, 1.13 million-square-foot Class A advanced manufacturing and technology development, is complete and actively marketing to tenants in Catoosa County, projected to bring more than 700 direct jobs to a county where more than 80% of the workforce today commutes out to work.
• Ringgold, as the county seat and the closest established community to the park along I-75, is the natural housing answer for a Catoosa County workforce that increasingly works within the county rather than commuting north into Hamilton County each day.