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Private Sector to Take Over Nashville’s Senior Housing Assets

7 Feb 2014, 3:13 pm

By Eliza Theiss, Associate Editor

Metro Nashville is looking to get out of the senior housing business, giving its two senior housing facilities over to private operators in a move that would result in a third private-sector senior living community. According to The Tennessean, Mayor Karl Dean’s plan would see Louisville-based Signature Healthcare take over the 419-bed Bordeaux Long Term Care located on County Hospital Road, while Vision Real Estate Investment Corp. affiliate Assisted Living Partners would take over the 100-bed Knowles Home Assisted Living on Camilla Caldwell Lane. If approved by Metro Council, the move would save $10.5 million in city subsidies.

Signature Healthcare will take over the management and operation of Bordeaux for a 10-year term, receiving a $1.3 million payment from Nashville. According to the Nashville Post, the company would operate 260 licensed beds at Bordeaux, where it would invest $250,000 in capital improvements. Signature will also operate a 168-bed skilled nursing home set to be developed near Skyline Medical Center. The $18 million facility will be developed by Ed. Street Co. and is expected to have a three-year development period, due to state certification requirements.

Assisted Living Partners would also enter a 10-year lease agreement with the city, but would end up purchasing the facility for $500,000, and spend $300,000 on renovations, reports The Tennessean. Vision will also have the option to acquire 44.6 acres from the Bordeaux grounds, developing several other housing options worth over $34 million, such as senior apartments, nursing facilities, town homes and affordable housing.  A further 400 acres of the Bordeaux campus could be turned into public park space.

Image courtesy of Bordeaux Long term Care

$65M New Nashville Ballpark Breaks Ground

30 Jan 2014, 2:35 am

By Eliza Theiss, Associate Editor

Groundbreaking Ceremony at New Nashville Ballpark

New Nashville Ballpark, the future home of the Nashville Sounds minor league baseball team, has officially broken ground.  The new stadium, which is expected to open in spring 2015, will rise on the site of the original Nashville Stadium, known as Sulphur Dell, which opened in 1870 and operated until 1963. The stadium will replace the Sounds’ current home, the Herschel Greer Stadium.

According to The Tennessean, the New Nashville Ballpark will feature 8,500 seats and hold a total of 10,000 fans. The development of the new ballpark will be funded by $65 million in bond revenue released by Metro Nashville to cover the $37 million in construction costs, $5 million of capitalized interest during construction and $23 million in land acquisition costs, comprised of $18 million payment towards the state for a new 1,000-acre parking facility and a $5 million payment towards the state for an underground parking garage planned nearby.

As a result of footing the bill for the development, Metro Nashville will own the ballpark and lease it to the Sounds, on 30-year terms at a cost of $700,000 per year, which will go towards repaying financing debt. Further sources of debt repayment will come from an estimated yearly 650,000 in sales tax revenue generated by the stadium, $520,000 in tax-increment financing, $345,000 from Metro Nashville’s yearly operating budget, as well as funds from Metro Nashville’s current operating agreement with the Sounds for Herschel Greer Stadium. Rounding of the necessary yearly $4.3 million in debt repayment will be $675,000 of property taxes paid by a $37 million, 250-unit residential project by San Antonio-based Embrey Development Corp. set to rise near the stadium’s home plate. A further $750,000 in property taxes will come from a $50 million mixed-use retail development planned by the Sounds ownership near the new stadium.

Early rendering for New Nashville Ballpark

Design is being handled by local firm Gobell Hays and national firm Populous, reported the Nashville Post. According to The Tennessean, Bell & Associates Construction was selected for the construction contract.

Advertised as a $152 million public private partnership, the project is expected to be an economic shot in the arm for North Nashville, the area north of downtown, which has seen little activity in the past years.

Images courtesy of Nashville Sounds via Facebook


Luxury Apartments Headed for Record-Breaking Sales, $50M Westmont Apartments Set to Break Ground

24 Jan 2014, 5:59 pm

By Eliza Theiss, Associate Editor

Vista Germantown

Following the recent $51.25 million sale of the 244-unit West End Village, it looks like record-breaking is in the air for Nashville’s apartment market. According to the Nashville Business Journal, the 331-unit Elliston 23 and the 242-unit Vista Germantown luxury apartment developments have been put on the market and are expected to surpass West End Village’s $210,000 per unit sale price. In fact, Elliston 23’s per-unit is speculated to hit the high $200,000s.

According to the Nashville Business Journal, Ohio-based Associated Estates Realty Corp.’s Vista Germantown had a $32 million development price tag when it opened in early 2012. The high-end community at 515 Madison Street comprises one- and two-bedroom apartments between 603 and 1,165 square feet, renting at monthly rates ranging between $1,205 and $2,645. Community amenities include state-of-the-art fitness center, club area with game-room, kitchen and lounge, salt water pool, grilling areas, outdoor firepit and TV area, three courtyards, garage parking and a high-end restaurant. Green features include electric car charging stations, a bike storage area and onsite recycling center.

Elliston 23

Southern Land’s Elliston 23, located at 2312 Elliston Place, comprises studio, one- and two-bedroom apartments between 554 and 1,363 square feet, with rents starting at $1,220 and exceeding $2,800. Community amenities include a 2,000-square-foot heated saltwater pool, grilling stations, outdoor cabanas with flat screen TVs, 24-hour fitness center, 24-hour conference room, 24-hour Wi-Fi Café , game room, controlled access building and parking, landscaped courtyard and concierge services. The LEED Silver registered community also boasts 15,000 square feet of street-level retail with tenants including a spa, fitness studio, salon and several eateries.

Elliston 23’s West End neighborhood will soon become one apartment community richer with the 320-unit Westmont Apartments project set to be developed in four phases by Texas-based Forestar Group, reported the Nashville Business Journal. The company recently filed permits just short of $50 million. Set to break ground in early 2014 on the site of a recently demolished apartment complex, the project will comprise two five-story and two four-story buildings as well as a six-story 414-car parking garage.

Images courtesy of Vista Germantown and Elliston 23 via Facebook

LaSalle Investment Management Buys West End Village for $51M

16 Jan 2014, 8:21 pm

By Eliza Theiss, Associate Editor

The recently completed 244-unit West End Village, a high-density luxury apartment community in Nashville’s West End has been sold for $51.25 million, or $210,000 per unit, reports the Nashville Business Journal. Chicago-based buyer LaSalle Investment Management Inc. acquired the newly finished asset from Atlanta-based developer The Residential Group LLC, which put the property up for sale late in the summer of 2013. The sale price seems to have brought a good profit for The Residential Group, as West End Village construction permits valued the development at $32.8 million. The property was marketed by Jones Lang LaSalle, according to a previous Nashville Business Journal report.

Located at 221 31st Avenue near the intersection of 31st Avenue and Long Boulevard, West End Village is comprised of two structures—one three-story and one five-story—featuring studio, one- and two-bedroom apartments. Units range between 517 square feet and 1,369 square feet and rent at rates between $1,265 and $2,572 per month. Residences come outfitted with washer and dryer, stainless-faced appliances, granite countertops, European style cabinets with modern hardware and nine- to ten-foot ceilings. Community amenities include gated, covered parking, bike storage, additional storage, high-tech conference center, state of the art fitness facility, outdoor pool with lounge area, grill area clubroom complete with coffee bar and cyber café, gaming room featuring a dry bar, private screening room with flat screen TVs and card room. Sustainable features include Energy Star appliances and light fixtures, high-performance windows and insulation, low VOC-emitting paints, carpets and sealants.

The community is in close proximity to Vanderbilt University, HCA, Country Music Hall of Fame, Second Avenue, the historic Ryman Auditorium, the 132-acre Centennial Park, five hospitals, fashionable restaurants and shopping.

West End Village was developed by a partnership comprised of The Residential Group, PPD Holdings, EDGE Principal Advisors and BBVA Compass Bank.

Image courtesy of West End Village via Facebook

Southern Land Scales Down Project, Moves Ahead With 16 Stories

10 Jan 2014, 5:06 pm

By Eliza Theiss, Associate Editor

4000 Hillsboro at 22 stories

Nashville-headquartered Southern Land Co. has announced it will be moving forward with its mixed-use Green Hills project, albeit in a scaled-down version, reported the Nashville Post. The project—which landed the company in hot water with area residents, after it supersized its initial plans from a 14-story tower to 22 levels—was recently withdrawn from the Metro Planning Department, and it will be redesigned to a 16-story height.

According to the Nashville Business Journal, Southern Land is targeting a late spring or early summer groundbreaking and a 2016 completion. In its downsized version, 4000 Hillsboro Pike will feature 285 apartment units, including 20 penthouses, 600 parking spaces and 60,000 square feet of multi-level office space located atop 15,000 square feet of street level retail. Two restaurants are also included in the project. Residential amenities include a fitness center, swimming pool, sky lounge, teaching kitchens, events plaza and a dog park. Although the cost of the project has yet to be released, the site, comprised of three parcels, had a price tag of $13.5 million. According to the project’s website the developers, a joint venture between Southern Land and Redwood Capital LLC, will also invest over a million dollars in area infrastructure improvements. The project is expected to be a success due to its location between Nashville CBD and Brentwood/Franklin, the area’s strongest Class A office and retail markets, as well as its adjacency to the wealthy Belle Meade neighborhood, where single family homes start at $750,000 and can even hit eight figures. Green Hills, the neighborhood of 4000 Hillsboro, is also an affluent area, and lacks rental housing.

Other area multifamily projects by Southern Land include the $60 million 331-unit Elliston 23 in Nashville’s West End, Tennessee’s first LEED Silver-certified multifamily property and the 370-unit Dwell at McEwen in Franklin’s Cool Springs area.

Rendering courtesy of Southern Land

Bluestone Properties and Harbor Group International Pay $92.1M for Nashville Apartments

20 Dec 2013, 4:06 pm

By Eliza Theiss, Associate Editor

Hickory Point at Brentwood

Hickory Point at Brentwood, a 298-unit apartment community located in the Brentwood suburb of Nashville, has been purchased by Nashville Hickory Point LLC for $35.1 million, reports the Nashville Business Journal.  The community’s official Facebook page also announced the sale, identifying Bluestone Properties as the new owner and manager of Hickory Point. The 24.95-acre complex was acquired from Park Nashville Partners LLC. According to PropertyShark.com data, Hickory Point had a 2013 market value just short of $25.1 million. The previous owner, a Baton Rouge, La-based company, purchased the 15180 Old Hickory Blvd site in 2004 for $1.5 million, while the 24-building, 30,393-square foot apartment complex was developed in 2006.

The low-rise gated apartment community features amenities such as a fitness center, pool, spa/hot tub, basketball court, recreation room, clubhouse, covered parking, business center, laundry facilities and onsite maintenance and management. Unit amenities include washer/dryer, dishwasher, refrigerator, microwave, air conditioning, large closets, patio/balcony and extra storage. Hickory Point at Brentwood comprises one-, two- and three-bedroom units ranging between 660 square feet and 1,219 square feet.

In other residential news, Harbor Group International, LLC (HGI) announced the sale of the 624-unit Lakes of Bellevue apartment community to Lakes of Bellevue Holdings, LLC for $57 million. Originally built between 1986 and 1987 and expanded in 1996, the asset was purchased by HGI in 2006 for $41 million and underwent a $1.4 million value-add renovation.

Lakes of Bellevue comprises one-, two- and three-bedroom units averaging 732 square feet in size. The 96-percent occupied community boasts amenities such as 1,033 parking spaces, three swimming pools, heated spa, two lighted tennis courts, car care center, playground and laundry facility.

Lakes of Bellevue’s 96 percent occupancy rate is slightly below the West Nashville occupancy rate of 97.2 percent reported by Colliers International for 2013’s third quarter, the second highest in the entire metro Nashville market. Nashville’s overall 96 percent occupancy rate is the highest since the third quarter of 2007 and is expected to reach 96.7 by year-end and dip to 95.2 percent within a year’s time due to new projects hitting the market. The third quarter closed with 19 developments under construction, totaling 4,343 units.

Image courtesy of Hickory Point at Brentwood via Facebook

Chart courtesy of Colliers International

Cushman & Wakefield |Cornerstone and Pat Emery Win Bid for Convention Center Redevelopment

13 Dec 2013, 4:19 pm

By Eliza Theiss, Associate Editor

Things are starting to take shape for Nashville’s former convention center: Mayor Karl Dean has selected a project spearheaded by Cushman & Wakefield |Cornerstone and iconic local developer Pat Emery to redevelop the location replaced by the 1.2 million-square-foot Music City Center which opened earlier this year.

The $230 million private cost project, which beat out four other proposals, entails knocking down the former Nashville Convention Center on Lower Broadway and replacing it with an over one million square-foot mixed-use development comprising office, retail and hospitality space, as well as entertainment complexes and underground parking. The project’s initial concept includes constructing an office high-rise near the corner of Fifth Avenue North and Commerce Street comprising up to 840,000 square feet of Class A office space. The neighboring Renaissance Nashville Hotel would receive access from Fifth and Broadway. A new conference center would also be created to exploit the hotel’s corporate meeting business. Two levels of high-quality destination retail, dining, entertainment and activity space totaling up to 194,000 square feet are also planned along with the 50,000-square-foot National Museum of African American Music. An expansive plaza on the corner of Fifth and Broadway is also in the cards and is expected to connect the project to major attractions on the Avenue of Arts, such as The Ryman Auditorium, Bridgestone Arena, Music City center and the 5th Avenue Arts District. Environmental sustainability will be a major trait throughout development and in the finished  project. Developers must also employ minority and disadvantaged businesses for at least 20 percent of the work.  The development’s scope and design elements will be tweaked in 2014 after community input has been obtained. The development team and the Metropolitan Government of Nashville and Davidson County are now set to start negotiations regarding development timeline, benchmarks and financial aspects.

“There is growing demand for high quality office space in downtown,” declared Mayor Karl Dean in a news release, adding that downtown shopping is also a growing demand. “This plan maximizes this prime location in the heart of our downtown tourism and entertainment district,” he added. “The team’s goal is to deliver a high quality, open-air, pedestrian-friendly destination to further enhance the city’s image,” said Buck Haltiwanger, principal and head of corporate services for Cushman & Wakefield | Cornerstone.

Spectrum/Emery President Pat Emery will serve as master developer, Cushman & Wakefield | Cornerstone will be in charge of leasing and marketing, with Buck Haltiwanger, Dick Fleming and Brent Basham as principals leading the redevelopment project. Skanska will serve as general contractor, while Gresham, Smith & Partners has been named project architect and engineer and Hawkins Partners, Inc. landscape architect. Vision Street will act as retail and entertainment consultant, while a business diversity management plan will be compiled by Sims Strategic Diversity Consultants. Public relations and marketing services are to be provided by Hall Strategies.

Renderings via Nashville Office of the Mayor 

Standard Parking Signs Lease in Dynamic Nashville Office Market

9 Dec 2013, 3:47 pm

By Eliza Theiss, Associate Editor

Standard Parking Corporation, a leading national provider of parking facility management services, has inked a lease at Riverview Business Center I and II, bringing the location to full capacity, reported the Nashville Business Journal. CBRE Nashville’s Sarah Pettigrew and CBRE Chicago’s Jarrett Annenberg represented Standard parking in the 33,257-square-foot lease. Taylor Hillenmeyer and J.T. Martin, also of CBRE Nashville, represented the owner, Newport Beach, Calif.-based KBS Real Estate Investment Trust.

Riverview Business Center I and II is located near I-65 and 24 in the MetroCenter submarket of Nashville. According to PropertyShark.com, the two onsite properties were built in 2000 and 2001 and feature 42,960 and 59,662 square feet of space on 16.9 acres. The real estate website assessed the business park’s value at $7,125,000 in 2012. KBS owns the one-story business park through KBS Riverview Business Center I & II,LLC. The REIT owns the 551,184-square-foot, six-building Nashville Flex Portfolio, which it purchased in mid-November 2007 for $53.5 million. The assets were built between 1986 and 2001.

Q3 2013 Nashville Office Market Vacancy Rates, Absorption, Availability

According to CBRE’s data, MetroCenter boasts the fifth lowest office vacancy rate within the metro area’s eight submarkets, with 8.64 percent, lower than Nashville’s average of 12.08 percent. However, Music City’s high vacancy rate stems from the three lowest performing submarkets’ high vacancy rate: Airport North with 14.4 percent, Downtown Nashville with 19.64 and Airport South with 20.64 percent. MetroCenter boasts the third lowest rental rate with $17.17 per square foot, lower than Nashville’s $18.5 average and had a 7,272-square-foot negative absorption rate in the third quarter. Although the Metro’s office absorption fell, the outlook is positive thanks to strong leasing activity, record-breaking sales (details here) and construction projects totaling 730,000 square feet.

Image credits: KBS Realty

Chart credits: CBRE

Nordstrom to Open New Store in Strong Nashville Retail Market

2 Dec 2013, 5:28 pm

By Eliza Theiss, Associate Editor

Nordstrom Inc., the popular Seattle-based retailer, has announced plans to open a new Tennessee location in the affluent Nashville suburb of Brentwood. The new store is a Nordstrom Rack (Nordstrom discount retail division) and will occupy 36,000 square feet at Brentwood Place Shopping Center. It will be the company’s first Rack location in Tennessee. The brand first broke into Tennessee in 2011 when it launched a full-line store at The Mall at Green Hills.

Managed by Baker Storey McDonald Properties, Brentwood Place is strategically located in Brentwood, Tennessee’s most business friendly city for the second year in a row, according to The Beacon Center of Tennessee, a nonprofit, nonpartisan research organization. The 310,000-square-foot power center is anchored by Kroger, TJ Maxx Home Goods, Steinmart and Office Depot. Although no information has been released in regards to what tenant Nordstrom Rack will replace, according to Brentwood Place’s October brochure, only 6,658 square feet of space were available for leasing. Discount clothing retailer Steinmart however, leases exactly 36,000 square feet in Brentwood Place.

Nashville Retail Vacancy Rate Q3 2013

Carl Storey, a principal at Baker Storey McDonald Properties, expressed satisfaction with Nordstrom’s decision to locate its first Rack at Brentwood Place. He said in a press statement, “They are joining an outstanding group of retail merchants in one of the premier shopping destinations in the greater Nashville area.” Brentwood is indeed one of the best Nashville submarkets for retail, a fact confirmed by Colliers International data. According to Colliers’ evaluations, Brentwood was the tightest Nashville retail submarket in 2013’s third quarter. The submarket features the lowest vacancy rate in the entire Nashville market with only 2.1 percent and declining, significantly smaller than the market’s overall vacancy rate of 7.7 percent. Brentwood also boasts an average asking rental rate of $15.39, higher than Nashville’s average of $14.32. Overall, the entire Nashville retail market has been improving, lowering its overall vacancy rate by 0.3 percent compared to the second quarter—the current 7.7 percent rate is the lowest since Q2 of 2009. A somewhat low volume of supply, combined with positive economic growth numbers, are expected to keep metro Nashville’s retail market strong.

Image credits: Baker Storey McDonald Properties

Chart courtesy of Colliers International

FHA and Michaels Development Company Deliver 49-Unit Senior Housing in Metro Nashville

20 Nov 2013, 3:06 pm

By Eliza Theiss, Associate Editor

Reddick Senior Residence

The first phase of The Franklin Housing Authority’s (FHA) portfolio redevelopment has been delivered with the grand opening of Reddick Senior Residence. The 49-unit affordable senior housing project was developed by the FHA in partnership with The Michaels Development Company and represents the housing authority’s first public-private partnership. “This is a wonderful first step in FHA’s comprehensive plan, and I look forward to seeing FHA’s continued progress in creating quality, affordable housing for our community,” declared Williamson County Mayor Rogers Anderson at the opening ceremony. The FHA kicked off a multiphase redevelopment plan in 2009, which entails replacing the housing authority’s 297-unit (now 253) portfolio of outdated dwellings with 308 new residences offering superior living conditions.

Reddick Senior Residence is located on the site of Reddick Court, a neighborhood of World War II homes, demolished in the fall of 2011. Ground was broken in September 2012 on the 1.54-acre site of Reddick Senior Residence, located in southwest Franklin, within walking distance of historic downtown Franklin. The $8.5 million project was master-planned by The Michaels Development Company, which met with future residents and community members for their input. The company, known for its experience in redeveloping public housing, is part of The Michaels Organization, a privately held family of eight integrated, but independent companies, which includes Interstate Realty Management, Reddick’s property manager, as well as Prestige Affordable Housing Equity Partners, LLC which syndicated the sale of federal Low Income Housing Tax Credits to raise $6.6 million in private equity to fund the project. The Tennessee Housing Development Authority provided $1 million in Housing Trust Funds for the project while the Franklin Housing Authority provided $500,000 from its capital fund. SunTrust Bank served as equity investor and construction lender.

The three-story Reddick Senior Residence comprises one- and two-bedroom apartments. Envisioned as a senior residence for low- and moderate-income individuals, rents are income-based and start at $524 per month for one-bedroom apartments, while two-bedroom units start at a monthly $618. The community, which houses residents aged 62 and up, opened fully leased.

Reddick Senior Residence groundbreaking

Reddick incorporates several green features such as native, drought-resistant landscaping, Energy Star equivalent appliances and lighting, low-flow water fixtures and eco-friendly paints and flooring. Amenities include an elevator, ample community space, club house, fitness center, laundry facility, wellness center, front porch lounge, courtyard, and on-site resident parking. Apartment amenities include dishwasher, microwave, air conditioning, garbage disposal and broadband internet access. According to Franklin Home Page, the first floor community room features a warming kitchen and big-screen TV, the second floor community room has a game table, while the third floor boasts a library. Reddick’s senior-friendly design includes hallway handrails and emergency pulls in all bathrooms. The controlled access community is within walking distance of a grocery store, city park and the Williamson County Library.

The Franklin Housing Authority and The Michaels Organization will collaborate on further phases of the housing authority’s redevelopment plans, which include affordable multifamily housing, financing for which is currently being secured.

Photos courtesy of The Michaels Organization and The Franklin Housing Authority