Value-Add Acquisition

Rise at Signal Mountain


Property Overview


Rise at Signal Mountain, a 280-unit, garden style apartment community, is located in the Signal Mountain submarket of Chattanooga. Built in 1986, the 43-acre site is situated on the side of Signal Mountain and is only a short drive from the flourishing North River area.

Investment Overview


StoneRiver acquired Rise at Signal Mountain after the deployment of Fund I equity but prior to the initial closing for Fund II.  StoneRiver had transacted with the seller on a previous transaction and was awarded the property due to our strong relationship with the seller. StoneRiver implemented a value-add approach that encompassed improvements to the unit interiors, building exteriors, and amenities.
Chattanooga, Tennessee
Property Type
Garden Style Apartments
Project Type
Year Built
# of Units
Date Acquired
January 2020
Date Sold
December 2021

Investment Rationale

Potential to Increase Rents – Rise at Signal Mountain had in-place rents that were approximately $219 less than its direct competitors in the submarket when acquired.


Value-Add Renovations – StoneRiver implemented a value-add approach that encompassed improving unit interiors with new granite countertops, updating lighting/fan kits, kitchen improvements, new cabinetry in certain units, and upgrades to HVAC, water heater and electrical systems; enhancing amenities, including improvements to outdoor spaces, pool deck updates, new dog spa, new package delivery system, the addition of a package delivery system and fitness center enhancements; and updating exteriors, including installation of Masonite siding, replacement of windows and attractive new color scheme.


Operational Improvements – StoneRiver Property Management increased property performance by pushing rents, increasing ancillary income and enhancing community engagement.

Investment Summary

Rise at Signal Mountain is a prime example of StoneRiver’s ability to create value through a well-executed value-add business plan. Under the leadership of our in-house construction management team, StoneRiver added value through exterior, interior, and amenity additions to maximize residential experience. StoneRiver Property Management (SRPM) played a pivotal role in these improvements by carefully managing lease expirations and move-ins to allow for an efficient and timely renovation process. SRPM also assembled an onsite team that raised occupancy, increased revenues, managed expenses, and ultimately drove performance. StoneRiver ultimately sold the property 23 months after its acquisition for a purchase price that delivered impressive returns for its investors.