No, the rendering pictured above doesn’t represent a project in the works in Metro Detroit, or anywhere in Michigan, but assume something like this will find its way here in the not so distant future.

For our July Newsletter, we combine two of our favorite topics - sports and real estate - to provide some light poolside reading about a new development coming to Knoxville, TN on the campus of the University of Tennessee.

UTILIZING CAMPUS REAL ESTATE BEYOND EIGHT WEEKENDS A YEAR

Recently, UT approved plans for an entertainment district around Neyland Stadium; the centerpiece of the project, on the site of an existing parking garage adjacent to the stadium, will be a 24-story condo/hotel tower, a 4,000 capacity outdoor concert stage, and a new parking structure.

According to the Knoxville Sentinel, the developer will fund the entire $280M project; UT approved a 99-year lease, receiving a minimum base rent of $1.5M annually, along with a 3% to 5% cut of the gross operating revenue.

The tower, which will overlook the stadium, will feature 180 hotel rooms, 30 condo-hotel units, 50 private luxury condo units, a resort-style rooftop pool, and 10,000 sqft of meeting space.

D.C. based developer Michael Morris opined: “Seven weekends a year, lodging demand in [SEC locations] like Knoxville, Tuscaloosa, and Oxford goes vertical against supply that’s thin, dated, and brutally overpriced. The branded-residence model fixes that elegantly: owners buy a unit, stay when they’re on campus, and drop it into a managed rental pool when they’re not — turning a game-weekend headache into passive income. The booster gets a home base; the market finally gets quality short-term inventory.

A 99-year ground lease means [UT] is choosing to participate in the upside of its own land for a century rather than collect a parking fee seven days a year. Universities sit on some of the best-located, most emotionally charged real estate in their entire regions, and most of them treat it like a liability to be insured. Tennessee just reframed campus-edge land as an operating business.”

And if you think this type of development isn’t going to catch the attention of schools in the other power conferences, think again - we’re looking at you Big Ten.

On a much smaller scale, the new DCFC soccer stadium in Corktown is planning for a residential component to their proposed facility, so it’s not a stretch to expect something similar to the Knoxville project in Ann Arbor or East Lansing.

And truthfully, a well-planned development has to be better option than the moat of empty parking/tailgating lots currently encircling most college stadiums.

You can read more via The Knoxville News Sentinel, here.

The owners of The New Home Experts®, have over 40 years of combined experience in real estate, including time with builders like Pulte & Toll Brothers.  They also provide market research for area builders, developers, and national firms.  If you’re considering a new home, remember: the builders' rep represents the builder, not you.  Work with the only local agents in Metro Detroit to specialize in new homes, and save money in the process – ask us how!