Red Balloon Portfolio · Realized
Knoxville — Deane Hill.
Sold · Ground-up development · 6410 Deane Hill Dr, Knoxville, TN
93,000
Gross square feet
715
Units
67%
Achieved IRR
3.72x
Equity multiple
The Project
Land to disposition in thirty-six months.
RBS purchased the Deane Hill Drive site in September 2019 and started construction in March 2020. The facility — 93,000 gross square feet, 715 units — received its certificate of occupancy in February 2021 and was operated under third-party management through lease-up.
In September 2022, thirty-six months after land close, the property was sold to Extra Space Storage for $15.5 million. The project was delivered under its $8.5 million budget, and $1.7 million of invested equity returned $8.8 million in net proceeds — a 67% IRR and a 3.72x equity multiple.
| Location | 6410 Deane Hill Dr, Knoxville, TN |
| Type | Ground-up development |
| Status | Sold |
| Gross SF | 93,000 |
| Net rentable SF | 71,000 |
| Units | 715 |
| Land close | Sep 2019 |
| Construction start | Mar 2020 |
| Certificate of occupancy | Feb 2021 |
| Disposition | Sep 2022 |
| Hold period | 36 months |
| Projected cost | $8.5M |
| Actual cost | $8.19M |
| Equity invested | $1.7M |
| Sale price | $15.5M |
| Net proceeds | $8.8M |
| Buyer | Extra Space Storage |
| Achieved IRR | 67% |
| Equity multiple | 3.72x |
