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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multiphase redevelopment plan in 2009, which entails replacing the housing authority’s 297-unit (now 253) portfolio of outdated dwellings with 308 new residences offering superior living conditions.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



255-Key Hyatt Place Opens in Downtown Music City

14 Nov 2013, 12:02 am

By Eliza Theiss, Associate Editor

Hyatt Hotels Corporation has announced the opening of the Hyatt Place Nashville/Downtown, the newest hotel addition to Music City’s vibrant downtown.

The property is located at 301 3rd Ave. South, in the vibrant SoBro neighborhood, one block away from the newly constructed Music City Convention Center and the newly expanded Country Music Hall of Fame and Museum and within walking distance of the Nashville CBD and Honky Tonk Row, the city’s famous live music cluster. Sporting attracations such as the Predators’ Bridgestone Arena and the Tennessee Titans’ LP Field are also in close proximity, as is Vanderbilt University. “With thousands of music enthusiasts, sports fans and business travelers arriving to our great city from across the country, there couldn’t be a more exciting time to be a part of this new opening in downtown Nashville,” declared Bill Farrell, general manager, Hyatt Place Nashville/Downtown in a press statement. “Hyatt Place is a smart and exciting brand, and we believe it is well positioned for success as part of the new Music City Convention Center District,” added Tim Marvin, managing director of acquisitions, Host Hotels & Resorts.

Hyatt Place Nashville/Downtown is owned by Host Hotel & Resorts, Inc. affiliates and White Lodging.  As previously reported, White Lodging served as developer of the project and will manage the property, its 170th portfolio asset. The property represents Host Hotel’s first new construction select service asset. PFVS Architects designed the 13-story project.

Hyatt Place Nashville/Downtown features amenities such as more than 3,386 square feet of high-tech, flexible meeting and event space, a 24-hour fitness center, an indoor swimming pool, a bar and bakery, The Guest Kitchen serving made-to-order meals, complimentary Wi-Fi and a 175-car parking garage.

Hyatt Place Nashville/Downtown broke ground in August 2012.

Image credits: White Lodging



2,800 New Jobs Announced for Greater Nashville Area

17 Oct 2013, 4:24 am

By Eliza Theiss, Associate Editor

Several projects worth hundreds of millions of dollars each have been recently announced for the greater Nashville area and they’re projected to create several thousand new jobs.

Early this week the Tennessee Governor’s Office announced that global tire manufacturer Hankook Tire Co., Ltd. has selected Clarksville, TN for the location of its first US manufacturing facility. The $800 million state-of-the-art plant will create 1,800 jobs in Montgomery County—an impressive boost for the local economy as well as for the state’s reputation as an auto industry hub.

Hankook will construct the manufacturing facility on a 469-acre site at the Clarksville Corporate Business Park, becoming its largest tenant. Development is expected to begin by the end of 2014 and will result in 1.5 million square feet of advanced manufacturing space. The plant is expected to become operational in 2016. Hankook will produce high-end performance tires in Clarksville, its eighth global production site.

Tennessee boasts the largest automotive industry in the Southern US in terms of jobs: 113,148 Tennesseans are employed at 910 automotive companies. The automotive industry has been the largest post-recession job-recovery booster, creating 12 percent of jobs in the state.

The Governor’s Office also announced that Great Lake Cheese, an award-winning manufacturer and packer of cheeses will also be opening a manufacturing facility in the Nashville area. The Hiram, Ohio-headquartered company will construct a 330,000-square-foot factory in Manchester Industrial Park in Manchester, TN, becoming the industrial park’s first resident. The $100 million facility will be the company’s first in the Southeastern US, and its ninth global location. Great Lake Cheese will start hiring in fall 2014 and will create 200 new jobs by 2019.

In addition, according to the Nashville Business Journal, Nashville-based Asurion, a provider of cell phone insurance services, has announced plans to create an 800-job new support center in Antioch, TN. The facility will occupy 122,000 square feet on Crossing Boulevard, leased from American Health Properties, Inc. Set for an early 2014 opening, the support center will become Asurion’s fifth location in Davidson County.

Photo courtesy of Tennessee Governor’s Office



The Connor Group Acquires Ashton Brook Apartments for $60.5 Million

11 Oct 2013, 6:13 pm

By Eliza Theiss, Associate Editor

Beware Nashville, there’s a new multifamily player in town. Centerville, Ohio-based The Connor Group, just entered the Nashville apartment market with a bang. The company acquired Ashton Brook, a 390-unit luxury apartment community from Alara Franklin Corp. for $60.5 million, reported the Dayton Daily News. The purchase is the real estate investment firm’s second largest purchase to date, and is in fact, according to The Tennessean, metro Nashville’s most expensive multifamily transaction of the year.  According to the same source, the seller, a California-based pension fund, was represented by CBRE Nashville.

Located in historic Franklin, TN, at 100 Gillespie Drive, Ashton Brook is in the one of the most desirable areas of Metropolitan Nashville, due to its proximity to the dynamic and up-and-coming Cool Springs submarket and its many employment opportunities. According to Ram Partners, LLC, the community’s property management company, Ashton Brook boasts one-, two- and three-bedroom units ranging between 880 and 1,430 square feet. Rents range between $915 and $1,605. Units feature oversized bedrooms, nine-foot ceilings, large kitchens, private patios, and wood burning fireplaces. Community amenities include two lighted tennis courts, two resort-style swimming pools, a 24-hour fitness center, parking garage, car care center, controlled access entry, landscaped grounds, waterscapes, dog park and wooded surroundings. The community is also located within the Williamson County school district, Tennessee’s best performing school district, enjoying recognition on a national level.

Nashville is The Connor Group’s ninth market. Other markets include Atlanta, GA, Dayton, OH, Charlotte, NC and several other Southeastern and Midwestern markets. Prior to the acquisition of Ashton Brook, The Connor Group acquired The Retreat, 400-unit apartment community in Charlotte, NC.

Image courtesy of The Connor Group 



Omni Nashville Opens while Crescent Cool Springs Apartments Break Ground

3 Oct 2013, 3:01 pm

By Eliza Theiss, Associate Editor

A ribbon cutting ceremony attended by local, state and Omni company officials marked the grand opening of the 800-key Omni Nashville Hotel, possibly the most anticipated hotel development in Nashville. Dubbed “The Key to Music City,” the 21-story luxury hotel broke ground in June 2011, topped out in November 2012 (as previously reported here), and was completed over two months before its predicted opening. Omni Nashville connects on three levels to the newly renovated and expanded Country Music Hall of Fame.

Located at 250 5th Avenue South, the hotel sits across from the 1.2 million square-foot Music City Center, in Nashville’s up-and-coming SoBro district. The hotel also features 80,000 square feet of meeting space, as well as a full-service business center, top-of-the-line fitness center, signature spa, Nashville’s only hotel rooftop pool, complete with bar, a live entertainment venue, local coffeehouse, a nationally renowned steak house and the hotel’s all-day dining restaurant. Omni Nashville also features the Five and TENN retail space, a luxury venue with multiple tenants.

Brasfield & Gorrie was project contractor, while HKS Hill Glazier Studio and Looney and Associates made up the architectural and design team. Omni Nashville Hotel is expected to be LEED Silver Certified NC (new construction).

In other news, Crescent Communities announced breaking ground on the 13-acre, 252-unit multifamily community of Crescent Cool Springs, located in Nashville’s historic Franklin suburb. The $42 million community will have a village-like design, with pedestrian-friendly features such as walking and biking trails. Further community amenities include a resort-style pool, fire pits, grilling areas and state-of-the-art fitness center. Designed to meet National Green Building Standards (NGBS) certification requirements from the National Association of Home Builders, the 13-building residential community’s architecture is by Cline Design and is being executed by Summit Contractors. Civil engineer Littlejohn Engineering, design concept creator Historical Concepts and Vignette Interior Design are also part of the development team. Expected to begin leasing in spring 2014, Crescent Cool Springs is to be managed by Greystar. Financing is provided by Fifth Third Bank. Crescent acquired 221 acres in Franklin for the Crescent Cool Springs apartment community and significant single family housing in early 2013. More details on the acquisition here.

Rendering courtesy of Crescent Communities



Fontanel Grows With IHG Partnership

26 Sep 2013, 4:58 pm

By Eliza Theiss, Associate Editor

InterContinental Hotels Group (IHG) has announced plans to develop two new properties under the Holiday Inn Resort brand: the Deadwood Mountain Grand, in Deadwood, SD and the Fontanel, in Nashville.

Fontanel, a Holiday Inn Resort, is set to open by mid-2015 at the Fontanel Mansion site at 4225 Whites Creek Pike, 15 minutes from downtown Nashville. The 140-key hotel will offer amenities such as 20,000 square feet of meeting space, pool and spa and will make use of various other on-site amenities and attractions. Fontanel Mansion sits on a 136-acre property, which also holds the Woods Amphitheatre, the Pepsi Studio Gallery, the Goo Goo Outpost retail and candy store, Café Fontanella Italian kitchen and wine bar, Prodigy Signature Disc Golf Course, AdventureWorks Ziplines, The Trails hiking and walking trails that connect to Nashville Metro Parks Greenway system. It’s also home to Southern Living Magazine’s 2013 Idea House, open until December, after which the Nashville farmhouse-inspired creation will be converted into a luxury boutique hotel. Named The Inn at Fontanel, the five-structure hotel will be connected by 2,700 square feet of deck outfitted with porch furniture overlooking a landscaped courtyard. It will feature six unique suites, a great room serving as meeting and lounge space complete with an honor system wet bar, dining room and kitchen. Fontanel is also set to open a new distillery operated by hand-crafted spirits maker Prichard’s Distillery by the end of the year

Fontanel Mansion, a 27,000-square-foot log home, was formerly owned by Country Music Hall of Fame member Barbra Mandrell. It comprises 20 rooms, 13 bathrooms, five fireplaces, two kitchens, and a pool atrium as well as an indoor shooting range. It has been the location for numerous photo and video shoots as well as television shows and movies. It’s Nashville’s only country music mansion tour. The asset is owned by Dale Morris and Marc Oswald through Morris Oswald Resorts and Entertainment Enterprises (MORE), which also owns The Deadwood Mountain Grand casino resort. Both properties will be franchised by an IHG affiliate.

The project is set to kick off in 2014 and will include a renovation of the mansion as well, according to The Tennessean. The development might go north of the $75 million mark and will feature eight structures surrounding the mansion. The project has been approved by the Planning Commission and is headed for a Metro Council evaluation.

Photo courtesy of The Mansion at Fontanel via Facebook 



Nashville Office Transactions Flirt with Nine Figure Prices

19 Sep 2013, 3:37 pm

By Eliza Theiss, Associate Editor

Nashville’s office market has experienced quite a flurry of activity recently. Things really heated up with the $152 million sale of the 520,000-square-foot Pinnacle at Symphony Place (details on the transaction here) and stayed hot with news of further large-scale office acquisitions.

The Nashville Business Journal reported that financial giant Goldman Sachs has entered a contract to acquire two office buildings near Nashville International Airport: Highland Ridge I and II, located on Marriott Drive.

No acquisition price has been reported for the transaction. However, real estate website PropertyShark.com puts the 2012 market value for Highland Ridge I at $14,917,600, and the market value of Highland Ridge II at $12,250,000.  Both properties are owned by Hr Nash, LLC & Svf Highland Ridge, LLC, an entity with a San Antonio address, which purchased the properties in late 2005, paying $20,550,000 for Highland Ridge II and $21,750,000 for Highland Ridge I. The Nashville Business Journal identified San Antonio, TX-based financial services provider USAA as the company operating under the by Hr Nash, LLC & Svf Highland Ridge, LLC, names.

Highland Ridge I, located at 565 Marriott Drive boasts 193,961 square feet of space, according to PropertyShark. The eight-story building was built in 1983 and occupies 9.25 acres. Highland Ridge II also features eight stories. The 1984-built property features 181,173 square feet on 6.63 acres.

In other news, the Nashville business Journal also reported that Honolulu-based The Shidler Group is set to buy Nashville City Center at a sale price that is rumored to surpass the $100 million mark. Owner Parmenter Realty Partners paid $83.5 million in mid-2008 for the CBD asset. The 27-story Nashville City Center boasts 477,158 square feet and was built in 1988. Building amenities include a 340-car underground parking garage, tenant storage, café, two-story lobby and 24-hour security.

All acquisitions will by far surpass 2013’s second quarter highest sale, which clocked in at $34,400,000, according to Colliers International.

Image of Nashville City Center courtesy of Jice99 via Wikimedia Commons



LEED Gold CBD Trophy Tower Sold in Nashville

12 Sep 2013, 3:08 am

By Eliza Theiss, Associate Editor

Raleigh, NC-based Highwoods Properties has announced the acquisition of Nashville’s premier commercial high-rise, The Pinnacle at Symphony Place, a 29-story Class AA office tower located in Nashville’s booming CBD. The 417-foot-high trophy office asset, located at 150 Third Avenue South sits in the SoBro district, a dynamic business, entertainment and retail hub. The 520,000-square-foot building was acquired for $152 million with Highwoods committing to $0.8 million building improvements expected to take place in the near future. Highwoods also received a $1.3 million closing credit for free rent from the seller, not included in the purchase price.

Boasting an 84.9 percent occupancy rate, Pinnacle is expected to generate a 2014 full year cash operating income of $8.8 million, while GAAP NOI will hit $10.7 million. The average remaining lease term in the high-rise is 11 years and the five-year rollover is less than 2 percent.  The tenant roster includes prestigious law firms such as Bass, Berry & Sims, Butler|Snow as well as a multitude of other companies like financial services firm Pinnacle Financial Partners. The Pinnacle sits on a ground lease with 93 years remaining on the term. Cash rent for 2014 will be $0.6 million.

Officially opened in 2010, The Pinnacle at Symphony Place features 520,000 square feet of office space located above level six, 15,000 square feet of street level retail space, four-and-half levels of underground parking combined with six levels of above grade parking. Amenities at the trophy tower include a fitness and yoga center, popular The Southern Steak and Oyster Restaurant, floral and gift shop, café and sundries shop, on-site shoeshine, concierge services, 24/7 manned security, video monitoring and card-controlled access. The Pinnacle also has direct access to the Shelby Street Pedestrian Bridge, which connects over 20 miles of greenways around Cumberland River. The high-rise was designed by internationally reputed architectural firm Pickard Chilton and local award-wining firm EOA Architects. It was developed by Barry Real Estate Companies at a cost of $170 million. It is one of only a handful of office towers in the Southeast with no interior columns, which increased useable space by up to 20 percent.

It is also the first office tower in Nashville to be LEED Gold certified. Green features include the one-acre green roof terrace garden, unique in Nashville and designed by Hawkins Partners which features WiFi, various  seating areas, a custom tent capable of holding 300, covered bike parking, preferential parking for carpoolers and low-emission vehicles, 30 percent more efficient water fixtures, state-of-the-art energy management, low-emitting paints, adhesives, a green cleaning program and building-wide recycling program, easy access to public transportation, and a walkscore of 97. A number of construction materials were locally sourced and had recycled content, while 90 percent of construction waste was recycled. The Pinnacle is an urban infill project.

Image courtesy of The Pinnacle at Symphony Place



Nashville Hotel Market Grows with 192-Key Homewood Suites

9 Sep 2013, 4:25 am

By Eliza Theiss, Associate Editor

The first upscale all-suite hotel in Nashville’s West End is fast approaching opening. Dubbed Homewood Suites by Hilton Nashville Vanderbilt Hotel, the 192-unit project located on 2400 West End Avenue advertises an October 2013 opening date on its website, after topping off in April 2013.

Officially confirmed in February 2011, the seven-story hotel was developed by 2400 TN West End Avenue, LLC , a joint venture between RMR Investment Company and hotel management company Vista Host. The latter will also operate the hotel on behalf of owner 2400 TN West End Avenue, LLC.

Located right across from the Vanderbilt University main entrance, the seven story hotel features 192 studio, one-bedroom and two-bedroom suites.  All units come with fully equipped kitchens, separate working/living and sleeping areas, and wired and wireless internet. Hotel amenities include two tech-savvy meeting rooms—a 437-square-foot boardroom and a 2250-square-foot multifunctional meeting room—fitness center, indoor saltwater swimming pool, convenience store, grocery shopping service, on-site laundry facility, high-speed internet access, and underground parking for 176. The hotel resonates with Vanderbilt’s architectural style and features a prominent 280 feet of frontage on West End Avenue.

Developed on the 1.36-acre former site of Carmichael Place Shopping Center and F.Y.E Records store, the all-suite extended-stay hotel topped off in April 2013. Cameron,Texas-based EBCO General Contractors, LTD. and Nashville-based Hardaway Construction formed a joint venture to handle construction. Memphis-based Bounds and Gillespie Architects and Nashville-based engineering firm Ragan-Smith were also involved in the project. First Tennessee Bank of Memphis provided construction financing. 

According to the Nashville Post, developers are negotiating with a yet-to-be-disclosed, albeit famous, Nashville restaurant and hope to ink the lease within a month’s time. If all goes well, the restaurant would open in early 2014.

Image courtesy of Homewood Suites by Hilton Nashville Vanderbilt Hotel’s Pinterest page



Nashville to Spend Tens of Millions on Riverfront Redevelopment Projects

31 Aug 2013, 6:37 pm

By Eliza Theiss, Associate Editor

Recently named one of the 10 best cities for urban green spaces in America by USA Today, Nashville boasts existing parks and trails as well as the city’s commitment to add around 22,000 acres of green space over the next 25 years. The city is continuing to live up to its reputation.

Nashville Mayor Karl Dean has announced major milestones and future projects in redeveloping and revitalizing as well as adding new green spaces along the Cumberland River. The projects are worth tens of millions of dollars and include developments on both banks of the river.

The west riverfront redevelopment project, which just moved from the planning stage to design, will include the construction of a flood wall along the pedestrian promenade running along First Avenue. This work will be partially funded by $7 million in federal flood aid, recently transferred to the project by the Nashville Metropolitan Development and Housing Agency (MDHA). An additional $35 million in capital funds are also available for west bank projects, which further include the redevelopment of the former Thermal Transfer Plant, the last remaining open space in downtown Music City, into a 12-acre public park.

The repurposing of the Thermal site will include The Green, a 1.5 acre event lawn flanked by gardens and a dog park that will also accommodate a soccer field. The 3.5-acre Bowl will be the Thermal’s outdoor performance venue component, with a 6,500-person amphitheater boasting seating for 2,500. A mile of new greenways surrounding and crisscrossing the park will also be established, expanding the Rolling Mill Hill Greenway and connecting to Riverfront Park. Once complete, Nashville will boast a two-mile uninterrupted walking and biking greenway connecting downtown and the east bank. Large parts of the west side project could be completed in 2015.

The east riverfront redevelopment project has finished design and a request for construction proposals will soon be issued. Construction will kick off in autumn 2013 and will create a riverboat landing park. Details of the project include a flat upper park facing the LP Field complete with plaza, moveable seating, pedestrian and bike paths, green areas and space for tailgating, events, festivals and temporary athletic fields. The second component will be a lower park sloping toward the river, complete with docking space for large boats, floating docks for small motorized boats as well as a landing mat for canoes and kayaks. Seating and picnic areas, a meadow garden and a plaza are also included in the project. $6 million in FY 2010 capital spending is available for the investment, which is part of the circa $30 million in east bank revitalization funds.

Image courtesy of Mayor Karl Dean’s Facebook page



Coworking Office Concept Opens Second Phase; Hines Picks Up Suburban Retail Center

15 Aug 2013, 7:01 pm

By Eliza Theiss, Associate Editor

Nashville has new office space to boast, and it’s not the usual run of the mill office space that abounds in urban cores. It’s phase two of Center 615, the eclectic office suite and co-working office space development at 615 Main St. in East Nashville, a submarket popular with start-ups and small companies.

“What people need in a workplace has evolved way beyond cubicles,” declared Center 615 owner Christian Paro. “East Nashville is fun and edgy and Center 615 reflects that (…) We are building a vibrant campus for small companies and creative professionals.”

The three-phase project has just launched phase two, while phase one launched in April 2013. The two phases, dubbed East Wing and Central Wing comprise 37 office suites ranging between 100 and 1,975 square feet with co-working desks and workstations. Collaborative work stations comprise CoTable, CoStation and CoCube setups.

Amenities include themed conference rooms, screening room, administrative support, 24/7 keycard access, reception service, indoor lounge as well as rooftop lounge and outdoor event space, break rooms with kitchen, fitness facility and complimentary on-site parking. Center 615 features contemporary and unique interior design with futuristic decor inspired by science fiction. Tenants of Center 615 also have access to the adjacent Paro South Creative Suites’ 1,400-square-foot art gallery/event space.

The third phase of the projects, set to open in 2016, is leased by Hardaway Construction, the property’s former owner. Paro South LLC, a Nashville-based property management and development firm, purchased the asset in December 2012.

In other local real estate news, Hines Global REIT has acquired The Avenue Murfreesboro, a 747,497-square-foot retail center built in 2007 in Metro Nashville’s Murfreesboro submarket. The 10-building shopping center is 89 percent leased to 93 tenants that include Belk, Dick’s Sporting Goods, Barnes & Noble and Bed, Bath & Beyond. Hines purchased The Avenue Murfreesboro from Faison & Associates and Cousin Properties. David Hocker & Associates has been appointed property manager.  The Avenue Murfreesboro is part of The Avenue outdoor lifestyle center concept introduced by previous owner Cousin Properties in 1998. The Avenue concept has seven locations throughout the Southeastern United States.

Photo courtesy of The Avenue Murfreesboro’s Facebook page

Chart courtesy of Colliers International

 



Luxury Student Housing Bought for $20M, Upgrades in the Works

12 Aug 2013, 2:11 pm

By Eliza Theiss, Associate Editor

Troy, Mich.-based real estate investment services entity Hayman Company has recently announced the acquisition of College Grove, an 864-bed luxury student housing community located in the vicinity of the Middle Tennessee State University (MTSU) campus in Murfreesboro, TN within the Greater Nashville Area. According to a report by the Nashville Business Journal, the buyer paid $20.7 million for the community located at 1540 New Lascassas Highway, about half a mile north of the MTSU campus. According to company information, Hayman will invest about $2 million to renovate units and common areas, such as the clubhouse, business center and fitness center, as well as some of the outdoor amenities.

“College Grove will be an ideal value-add opportunity with our updated amenities offered at the right price,” said Jerry Tonn, senior vice president of Hayman Company. The 240-unit community consists of two-bedroom and four-bedroom apartments between 770 square feet and 1489 square feet in size, which currently rent at rates between $339 and $519 per month. The luxury student apartment complex features high-end community amenities such as a fitness center, resort style pool and spa, outdoor whirlpool, tanning dome and bed, misting station, tennis courts, sand volleyball court, basketball court, outdoor courtyards complete with picnic area and barbecue grills, coffee station, car wash, complimentary parking for residents as well as guests, community-wide Wi-Fi, including the pool deck, computer lab, on-site management. The community is pet friendly. Units, which come fully furnished, feature electronic front door locks, washer and dryer, private balcony/patio, sizeable kitchen complete with microwave, and extended basic cable.

“Our company targets conventional and student housing communities that are well located in growing markets and present a value enhancement opportunity through renovation and repositioning,” declared Andrew Hayman, president of Hayman Company. The acquisition is in accordance with the buyer’s investment strategy, as MTSU is one of the oldest and largest in Tennessee and boasts high enrollment numbers: fall 2012 brought 25,000 undergraduate and graduate students to its halls. The purchase of College Grove has increased the company’s conventional and student housing portfolio to 15,000 units nationwide.

Photo courtesy of College Grove



Landmark Breaks Into Nashville Apartment Market with 380-Unit Community

5 Aug 2013, 8:43 pm

By Eliza Theiss, Associate Editor

Nashville’s multifamily is staying hot, continually proving that the multifamily market’s success in Music City is not just a temporary spike – it’s here to stay.

The Nashville Business Journal, quoting a Colliers International market snapshot, reported a 0.9 percent increase in the occupancy rate, bringing it to 95.8 percent for 2013’s second quarter, while rents went up 2.1 percent to an average of 91 cents per square foot. The market’s performance is more impressive when the 766 new apartment units that came to the market are taken into consideration.

This should come as no surprise as more and more of the multifamily industry’s movers and shakers move into the Nashville area. For example, Landmark Apartment Trust of America (LATA), has recently bought into the Greater Nashville Area, by purchasing Mission Brentwood Apartments. According to the Nashville Business Journal, LATA paid $32.3 million or $85,000 per unit for the 380-apartment community located at 1000 Enclave Circle, in South Nashville. According to a press release, the low-rise apartment community was part of a three-property acquisition, worth $98.9 million. Now renamed Landmark at Wynton Pointe, the asset was picked up along with the 364-unit Landmark at Preston Wood, located in Richardson, TX and the 590-unit Landmark at Gleneagles, located in Dallas, TX. Combined, the properties comprise 1,334 units and boast a 94 percent occupancy rate. Landmark at Wynton Pointe boasts amenities such as multiple swimming pools, heated spa, fully equipped fitness center, picnic and grill area, 1,932 square feet of tennis courts, resident business center, Wi-Fi café and car care center.

“We continue to invest in multifamily properties located in Southern U.S. markets that we believe will benefit from our proven repositioning program and sophisticated operating platform,” declared LATA Chief Executive Officer Stanley J. Olander, adding “We are also pleased to be entering Tennessee where we’ve identified strong market fundamentals and an opportunity to grow our portfolio.”

According to real estate website PropertyShark, the 33.15-acre asset was previously owned by Mission Brentwood, Dst, an Oakton, VA-based entity that purchased the community in October 2006. The same source estimated the property’s 2012 market value at $18,676,000.

Image courtesy of Google Maps. 



Historic Building Takes the LEED in Nashville

11 Jul 2013, 8:29 pm

By Eliza Theiss, Associate Editor

The Bridge Building, a historic Nashville structure, now holds the highest score in U.S. Green Building Council’s LEED for Core and Shell category with a record-breaking 99 points out of the maximum 110—a 90 percent score. Citing a press release, the Nashville Business Journal reported that both the renovated and the newly added-on part of The Bridge Building have earned the much-coveted Platinum rating, which it achieved by scoring maximum points in Energy & Atmosphere, Innovation and Regional Priority Credits and Sustainable Sites. Among its many green features, the Bridge boasts a geothermal heat pump system.

Located in downtown Nashville, on the Cumberland River’s east bank, The Bridge Building is part of Nashville’s New Riverfront Park Plan, which comprises 19 riverfront enhancement programs meant to reclaim and repurpose the city’s former industrial areas. Also known as NABRICO, due to its previous owner the Nashville Bridge Company, the property was built in 1908 as a 5,000-square-foot office building to be used as the company’s headquarters, according to energy.gov’s profile of the project, with two more additions in 1923 and 1965. Following the decline of river transportation on the Cumberland, the mid-90s brought the Tennessee Titans NFL franchise to the city which required a new stadium. With the LP Field set to be built in the riverfront area, by the time the decade was over the entire riverfront industrial area was razed, except the historic NABRICO building which was then included in the riverfront redevelopment plan, as an energy efficient project to be put back into use. Because of its strategic location at the Shelby Street Pedestrian Bridge, a large part of the necessary funding for the Bridge’s redevelopment was covered by capital improvement funds, as well as by accessing an Energy Efficiency and Conservation Block Grant. Work on the project included bringing the original structures to modern safety and infrastructure standards, reconditioning original architectural features, such as a historically responsive façade renovation with associated roof, window and exterior door replacement systems, and the creation of amenities on the ground floor for the adjacent Adventure Play Park water park—such as a park office and concessions. Furthermore pedestrian connection was reestablished between the building and the Shelby Street Pedestrian Bridge conjunction via a vertical circulation system. New space was also added with the six-floor Bridge Building now clocking in at 21,500 square feet. The project was commissioned by the Nashville Metropolitan Development and Housing Agency (MDHA) and designed by Hasting Architecture Associates and its greenSTUDIO division.

The previous record-holder in the U.S. Green Building Council’s LEED for Core and Shell category was Dockside, a mixed-use building in Victoria, British Columbia which scored 94.5 points—an 86 percent score. The LEED Core and Shell standard is applied for structures where the asset’s owners control exterior and layout elements and mechanical systems, but not changes implemented by leaseholders.

Image courtesy of the Nashville Metropolitan Development and Housing Agency



Nashville Symphony Sees the Light at the End of Tunnel. Maybe

3 Jul 2013, 7:26 pm

By Eliza Theiss, Associate Editor

The Nashville Symphony Orchestra, weighed down by bitter financial struggles recently, seems to have caught a break. A break worth tens of millions, in fact. It seems that the 2006-built Schermerhorn Symphony Center, located in downtown Nashville, will be able to avoid foreclosure from its lenders including Bank of America, SunTrust Bank and Regions Bank. Foreclosure was scheduled for June 18, but the Nashville Symphony reached an agreement with its lenders, with significant help from billionaire local businesswoman Martha R. Ingram, a driving force behind the cultural center, reported Philanthropy News Digest. Ingram reportedly provided a significant part of the outstanding obligations, resulting from a $102 million bond issued for the construction of the Schermerhorn Symphony Center. Liquidity provided by Ingram is rumored to be, at least in part, covered by a long-term charity donation that was accelerated to avoid the center’s June 28 foreclosure auction.

According to the Nashville Business Journal’s coverage of the story, The Nashville Symphony had an outstanding commercial bank debt of $80 million as well as $15 million in swap arrangements. Following the deals it struck with its lenders, the cultural institution has reduced its overall debt from almost $100 million to $20 million, which is now owned by Martha R. Ingram. However, the symphony’s contribution has not been made public. The debt was tied to a 2004-filed $102 million loan for the construction of the new symphony hall. The symphony also faces further difficulties as the July 31st expiration of its musicians’ collective bargaining agreement looms over. Although negotiations have begun, with tensions running high, the symphony is not out of the woods yet, especially after the recent lay-off of its in-house dining staff, which included 16 full-time and 21 part-time food service employees and two full-time events employees. Five full-time staff members, however, were offered part-time positions, reported the Nashville Business Journal.

Named in honor of the late Maestro Kenneth Schermerhorn, who led the GRAMMY® Award-winning Nashville Symphony for 22 years, the Schermerhorn Symphony Center is located in Nashville’s SoBro neighborhood across from the Country Music Hall of Fame and Museum. Construction began in 2003 and finished in 2006. Designed in the style of late 19the century European concert halls, the symphony features a  1,844-seat, three-level main concert venue dubbed  Laura Turner Concert Hall, which features a custom-built Schoenstein & Co. of San Francisco concert organ. The orchestra level seats of the main venue can also be transformed into a 5,700-square-foot hardwood ballroom floor.  The symphony center also houses the 3,000-square-foot  Mike Curb Family Music Education Hall. It also features  a colonnade-enclosed public garden—the Martha Rivers Ingram Garden.

 



Music Row Apartment Asset Sold for $15.6M

12 Jun 2013, 6:47 pm

By Eliza Theiss, Associate Editor

It’s another big apartment sale for Nashville. Although it didn’t break Eleven North’s all-time record selling price, Note 16’s $181,000 per unit selling price has certainly made a splash in Music City’s oh-so-dynamic multifamily market. According to the Nashville Business Journal, Loma Linda, Calif.based LLU Tennessee Multifamily Properties acquired the property for $15.6 million from Stonehenge Investments, the property’s Atlanta-based developer. A Jones Lang LaSalle multifamily broker represented the seller. The apartment development, now fully leased, could be converted into condominiums in the near future.

Located at the corner of Horton and 16th Avenues, the 86-unit property sits in Nashville’s famous historic Music Row district, a hub of entertainment. Amenities at Note 16 include a 24-hour fitness center, business center, cyber clubroom featuring a coffee bar, landscaped courtyard complete with sundeck, fireplace, grilling area, water feature and resident lounge, as well as trash chutes and recycling area on every floor, designated pet walking area, controlled access building and parking deck and elevators. The pedestrian friendly community is within a short walk of numerous shops, restaurants and parks.

Note 16 is comprised of studio, one- and two-bedroom units, ranging between 488 and 1,211 square feet. Apartments feature open floor plans and nine-foot ceilings, faux hardwood floors, designer lighting and designer wood cabinets and are outfitted with black-on-black Energy Star appliances, built-in microwaves, full size washer/dryers and a high efficiency HVAC system.

Note 16 will be managed by Riverstone Residential Group.

For more info on Eleven North’s sale, click here

Image courtesy of Note 16’s Facebook page



Carey Watermark Makes $77M Statement in Nashville Hotel Biz

5 Jun 2013, 8:35 pm

By Eliza Theiss, Associate Editor

Carey Watermark Investors has announced the acquisition of the Hutton Hotel, one of Nashville’s top hospitality assets. CWI has disclosed an acquisition price of $77.3 million for the property, while also announcing an estimated $3.7 million in additional costs such as planned capital improvements and various other purchase–related spending.

Located at 1808 West End Avenue in the dynamic West End neighborhood, the 247-key boutique hotel is in close proximity to both major entertainment and employment options, such as the just-opened 1.2 million square-foot Music City Convention Center, the Country Music Hall of Fame, Grand Ole Opry, Music Row, Vanderbilt University and numerous corporate users as well as important future investments, such as the planned  900,000-square-foot mixed-use West End Summit, an office and hospitality development projected to bring around 2,000 jobs to the Midtown area (Read more about West End Summit here).

Hutton, a four-star, luxury lifestyle boutique hotel, boasts top-of-the-line amenities such as 13,600 square feet of flexible meeting space, dividable into nine meeting areas, which include the 7,000-square-foot Vista Ballroom, 24-hour business center, state-of-the-art  fitness center,  on-site spa and a 300-car parking garage. Dining venues include the hotel lobby Java Bar and the 1808 Grille and Bar. The pet-friendly hotel is also Nashville’s greenest hotel. The building itself was built in the 1970s and it used to be an office, until it was redeveloped, incorporating green features such as energy-efficient appliances and systems, including elevators that consume only 30 percent of the energy of traditional lifts, high-tech HVAC system, LED and fluorescent lights, electric car charging stations and hybrid courtesy vehicles, biodegradable cleaning products and various recycling programs.

Since its February 2009 opening, the 247-key Hutton Hotel has amassed numerous awards and accolades, increasing its investment appeal. Among such distinctions are an AAA Four-Diamond rating, a Forbes Four-Star Award. Hutton has also been included on Travel + Leisure’s T+L 500 list, on Conde Nast Traveler’s Hot List, as well as on the 2013 Forbes Travel Guide.

Amerimar Enterprises, Inc. will stay on as property manager. The Hutton Hotel is also affiliated with Leading Hotels of the World, a provider of marketing, reservations and related services to high deluxe hotels worldwide.

Image courtesy of The Hutton Hotel’s Facebook page



Luxury Multifamily and Boutique Retail Mixed-Use Development Kicks Off Pre-Leasing

24 May 2013, 7:32 pm

By Eliza Theiss, Associate Editor

H.G. Hill Realty Company has announced the start of pre-leasing for residential units at 12South Flats, the mixed-use project rushing towards completion in Nashville’s 12 South restaurant and retail district. The 121,000-square-foot, four-story development is the result of a joint venture between Nashville-based H.G. Hill Realty Company and fully integrated real estate services company Southeast Venture.

Located in Nashville’s historic 12 South Neighborhood, the mixed-use project aims to offer urban convenience paired with neighborhood charm. Slated to open in August 2013, the property comprises over 9,800 square feet of street-level retail space, with 90 luxury residential units taking up the three floors above.

The property’s residential component, which has just kicked off pre-leasing, is composed of 82 studio and one-bedroom apartments and eight two-bedroom units. Community amenities will include a fitness center, Sky Lounge outfitted with Apple computers, coffee bar and cyber café, fitness center, pet park, underground residents’ parking garage, and caged storage units.

12 South Flats, a redeveloped urban site, will also boast several echo-friendly elements, such as low-flow plumbing fixtures, high SEER air-conditioning units, alternative fuel charging stations, covered bicycle storage, Energy Star appliances, immediate access to public transportation, highly reflective roof, and upgraded Low-E windows compliant with the Greater Nashville area’s climate. Units ranging between 524 and 1,160 square feet are to be outfitted with stainless steel kitchen appliances, granite countertops, frost-free refrigerator, air conditioning, dishwasher and designer lighting. Some units will also boast private balconies and patios.

12South’s ground floor residential component, currently 85 percent pre-leased, is set to open for business in fall of this year.  Retail and restaurant tenants of the property include original restaurant concept Josephine, set to lease 3,163 square feet, next to the 1,531 square feet Jeni’s Splendid Ice Cream, which will lease for its second Music City location. High-end apparel store Emerson Grace has signed for 1,529 square feet, while gifts, home décor and furnishings retailer Cadeau Gifts will take up 1,531 square feet for its second Tennessee store. The residential component will boast its own 50-car surface parking lot.

Southeast Ventures brokers Tarek El Gammal and Greg Coleman are in charge of 12South Flats leasing operations.

Image courtesy of 12 South Flats’ Facebook page

 



186-Unit Apartment Community Trades in Metro Nashville

15 May 2013, 6:38 pm

By Eliza Theiss, Associate Editor

Greensboro, NC-based Bell Partners Inc., the seventh largest apartment operator in the United States, has announced the acquisition of Grove Franklin Apartments, a 186-unit apartment community in Nashville’s suburb of Franklin, TN.

The property, aptly renamed Bell Franklin Gateway, is located at 1116 Davenport Blvd, at the intersection of Franklin Road and Moores Lane, at the gateway between Brentwood and Franklin, two of the most prosperous suburbs of Nashville. The 186-unit property is comprised of one-, two- and three-bedroom apartments. The fully leased community features amenities such as a 24-hour fitness center, resort-style swimming pool, designated picnic area complete with fire pit and grills, clubroom with complimentary Wi-Fi, business center and internet café, executive conference room, expansive lawn areas as well as storage space and garages. All units feature finishes such as granite countertops, tiled backsplash, stainless steel and black appliances, washer and dryer, a patio or balcony.  The townhomes of Bell Franklin Gateway also feature a two-car attached garage and hardwood floors, with some units boasting walk-in showers, Juliet balconies and garden tubs. Units range in size from 672 to 1,619 square feet. The community is within walking distance of Gateway Village, the prestigious Brentwood High School and Middle School, and the Franklin/Cool Springs employment hub.

The Nashville Business Journal reported a $35 million sale price for the property (or about $188,000 per unit), which Bell purchased from SWH Residential, LLC.

To date Bell Partners has invested over $112 million in apartment properties, including its most recent acquisition of Bell Franklin Gateway. The company recently completed the $200 million final close of Bell Apartments Fund IV. The company now owns or operates 248 apartment assets, totaling upwards of 69,000 units.

Photo courtesy of Bell Partners

Chart courtesy of CBRE



Franklin Shopping Center Bought for $37.5M

25 Apr 2013, 4:35 pm

By Eliza Theiss, Associate Editor

Indianapolis-based real estate investment trust Kite Realty Group has announced the acquisition of Cool Springs Market in Franklin, Tennessee. The full service REIT purchased the 224,000-square-foot shopping center for $37.5 million—this figure, however, does not include closing costs.

Cool Springs Market, located at the intersection of I-65 and Cool Springs Blvd, draws its customer base from a five-mile trade area with a population of 85,200 boasting average household incomes of $124,000 which is in compliance with the buyer’s declared focus on the development, construction, acquisition, ownership and operation of high quality neighborhood and community shopping centers in selected US growth markets. “Nashville is a new market for us that we are very excited to be entering as it aligns directly with our geographic strategy of growth cities in the Southeast, Midwest, and Texas,” said Kite Realty Group Trust Chairman and Chief Executive Officer John A. Kite.

According to a recent Nashville Market Outlook 2013 report released by CBRE, Music City’s retail market will continue its upward climb throughout 2013 due to the city’s multifaceted and resilient economy. Coupled with its investment rates proving more agreeable than those of first tier markets, Nashville’s retail market is poised to see pricing pick up throughout the year, especially in the case of well performing grocery-anchored properties, as well as attractively located power and community centers. Cool Springs Market’s appealing location, as well as the presence of a non-owned Kroger at the site, makes the acquisition one that guarantees healthy returns. CBRE’s evaluation of the market shows cap rates for Class A grocery-anchored properties moving between 7-7.5 percent with an expect tilt below the seven percent mark.

Cool Springs Market’s 5 percent vacancy rate is also above metro Nashville’s 7.8 percent year-end vacancy rate. Tenants include Dick’s Sporting Goods, Marshall’s, Staples and JoAnn Fabrics.

Its $39.5 million purchase price would also place it in the top three purchases of 2012.

Image courtesy of Dwight Burdette via Wikimedia Commons

Chart courtesy of CBRE