Core Spaces, Schenk Realty, Kayne Anderson Real Estate Close $233.3M Construction Loan to Bring Largest Student Housing Development to Knoxville, Tenn.
CHICAGO and KNOXVILLE, Tenn. – Sept. 1, 2023 – Core Spaces (“Core”), Schenk Realty, and Kayne Anderson Real Estate (“KA Real Estate”) announced the completion of a $233.3 million construction loan to fund the building of Hub Knoxville, a multi-tower, almost 2,000-bed purpose-built student housing complex in Knoxville, Tennessee.
Situated along Cumberland Avenue near the University of Tennessee, Hub Knoxville will include three towers, comprising two 10-story structures and one 7-story building, with a total of about 600 apartments and about 2,000 beds in studio through five-bedroom floor designs.
The mixed-use property will also include approximately 30,000 square feet of retail space and a parking garage with approximately 1,800 stalls. Hub Knoxville’s parking garage will supply necessary parking spots for the Fort Sanders Regional Medical Center and East Tennessee Children’s Hospital thanks to cooperation with Covenant Health.
“We want to thank Covenant Health, our partner in developing the parking garage, and East Tennessee Children’s Hospital for supporting our project. This is a complex, multi-phased development that, at the end of the day, would not have been possible without the assistance of KCDC, and more specifically Ben Bentley and Jim Hatfield along with the City of Knoxville, and more specifically, RJ Justice and Mayor Kincannon. Together, we were able to develop a shared vision for the re-development of the Cumberland Avenue Corridor,” said Jared Schenk, Principal of Schenk Realty.
Stretching 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.
“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.”
Hub Knoxville’s building façade will match the surrounding landscape by incorporating modern forms and components that are complemented by traditional brick exteriors and embellishments that honor the region’s heritage. The property will feature high-design interiors, refined finishes, and a market-leading amenity package, including a resort-style rooftop pool deck with unrivaled views of the University and downtown, a courtyard with grilling stations, a spa & fitness center, private study rooms, and a coffee shop.
Construction began in the spring of 2023, and the project is scheduled to be completed in phases in the fall of 2025 and 2026. Antunovich Associates and Core Spaces are co-developers on the project, with Juneau Construction Company serving as the General Contractor, Hallway Plumbing as the New Construction Plumbers, Antunovich Associates as the Design Architect, Dwell Design Studio as the Architect of Record, and Parini Design as the Interior Designer.
Hub Knoxville is Hallway Plumbing’s largest contract year to date, with an estimated economic effect of $700 million to $800 million during construction, including the support of over 3,800 jobs.
