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Centerline Arranges $10M Loan for 210-Unit Antioch Community

31 Mar 2014, 6:41 pm

By Eliza Theiss, Associate Editor

Centerline Capital Group, a provider of real estate financing services for market-rate and affordable multifamily housing recently provided a $10.4 million Freddie Mac conventional loan to refinance Cedar Pointe Apartments, a 210-unit multifamily asset in the Greater Nashville Area. Borrower Cedar Pointe Properties, LTD will use the loan for capital improvements that will raise the asset’s collateral.

Located in Antioch, TN the garden-style low-rise apartment complex was built in 1988 with financing from $9.5 million in tax exempt bonds issued in 1985. Cedar Pointe Apartments comprises 11 two- and three-story residential structures and a leasing/clubhouse building. The community offers studio, one-, two- and three-bedroom apartments featuring 750, 800, 1,200 and 1,500 square feet of space. Rents start at $690 for studios and go up to $975 for three-bedroom two-bathroom units. All apartments feature walk-in closets, wood burning fireplaces, full washer and dryer connections, enclosed patio or balcony, high speed Wi-Fi and dishwashers. Community amenities include 365 open parking spaces, car care center, fitness center with personal trainer, tanning booth, lighted tennis court, outdoor swimming pool and hot tub, sun deck, barbecue grilling station, picnic area, walking trailers, playground, dog park, ping pong table, business center, coffee bar and movies.

According to Keith C. Morris, vice president, Mortgage Banking Group at Centerline the property enjoys a very stable occupancy rate. Cedar Pointe has been under the management of Alexander Properties Group, Inc. (APG) since 2003. APG currently manages 12 multifamily properties in the Southeastern US, totaling 1,934 units. In the Greater Nashville Area APG has a 580-unit managed portfolio which includes the Wynstone apartment community in Nashville.

“Cedar Pointe is located in a market that consistently supports demand for multifamily housing and offers a diversified economic base including healthcare services, professional services, and entertainment,” Morris added.

According to PropertyShark.com the 18-acre community’s market value was $9.2 million for 2012.

Image via cedarpointnashville.com


Walmart, Green Manufacturing Announced for Nashville Metro

24 Mar 2014, 2:00 pm

By Eliza Theiss, Associate Editor

Retail giant Walmart will open another store in Metro Nashville, announced the city leaders of La Vergne, where the store is set to open.

Although not many details of the development have been released, the site of the store has been identified as the corner of Murfeesboro Road and Fergus Road. The La Vergne Planning Commission will vote on March 25 on subdividing the 45.15-acre lot into three parcels. If approval is received, Walmart will present a site plan to the commission. Walmart is expected to spur commercial activity in the area, attracting other retailers and restaurants. Furthermore, the store will create 400 new jobs. La Vergne, a town of just over 33,700, has been courting Walmart for three years.

According to wkrn.com, the store, a Walmart Supercenter, will open in the winter of 2016.

In other news, Vintage Heartland, a lingerie and apparel brand, is considering Nashville for the site of its first manufacturing facility. Set to open before the year is out, the eco-friendly facility will feature state-of-the-art automated machinery, digital printing and innovative design and patternmaking technology that will result in lower production costs. “There is only a 10%-20% price difference between manufacturing here and manufacturing overseas—with the right business model,” declared brand owner Kate Liegey.

Although the location and size of the new manufacturing facility has not been released, it is known that it will be energy-efficient and feature amenities such as an on-site wellness center and a garden with flexible hours. Vintage Heartland will hire over 100 workers, who will receive salaries higher than the industry average plus incentives. The company will also offer jobs for Nashville “Wounded Warriors.” The project has met with the approval of Bill Hagerty, the commissioner of Department of Economic and Community Development for Tennessee, the Nashville Mayor’s office and Start Up Tennessee.

Image via lavergnetn.gov


Viking Partners Pays $16M for Suburban Shopping Center

16 Mar 2014, 3:17 pm

By Eliza Theiss, Associate Editor

Cincinnati-based private equity real estate firm Viking Partners LLC has announced the acquisition of two high-potential shopping centers: Bluebonnet Parc in Baton Rouge, LA and Jackson Downs in Nashville, TN, spending $37.35 million.

Both properties are in accordance with Viking Partners’ acquisition strategy that targets value-add real estate assets in the $2 million to $50 million range in Midwest or Southeast locations. Furthermore, both locations are situated in affluent suburban areas with feasible demographics and stable or growing, high traffic areas.

Nashville’s Jackson Downs, purchased for $16.1 million, integrates well into this strategy. According to a company news release, Viking will seek to add value by implementing aggressive management and leasing, as well as renovating the property. The almost 135,000-square-foot shopping center could also be expanded, with development on an adjacent parcel. Located on 16 acres off Lebanon Pike, Jackson Downs is shadow-anchored by Target and Kohl’s. Its own tenant roster includes Marshall’s, Office Max, GameStop, Party City, Pier One, CATO and Dollar Tree.

The 135,367-square-foot Bluebonnet Parc in Baton Rouge was picked up for $21.25 million. As previously reported, Bluebonnet was acquired from an affiliate of Retail Properties of America Inc., a national self-managed REIT.  According to The Tennessean, Viking affiliate Viking Partners Fund II LLC  picked up Jackson Downs from entity Jackson Downs II E&A LLC.

Viking Partners has acquired, developed, leased or managed over four million square feet of commercial retail properties valued at over $450 million.

Image courtesy of Viking Partners

Luxury Assisted Living Project Proposed for Franklin

10 Mar 2014, 3:30 pm

By Eliza Theiss, Associate Editor

The Villas at Canterfield

Atlanta-based Medical Development Corp., a family-owned development and management company specializing in senior housing and hospitality, is eyeing Franklin for a luxury hotel-style assisted living center, reported the Franklin Home Page.

The $15 million facility is being proposed for Moores Lane, on an 18.35-acre site previously zoned for such a development. Dubbed Canterfield at Franklin, the development will comprise 71 assisted living units in a mostly three-story structure, with the 20-unit memory care department located in a one-story wing. Five one-story independent living villas and 8,000 square feet of commercial retail space are also included in the developer’s plans.

Although set to be developed on an appropriately zoned site, Canterfield at Franklin still has to be reviewed and approved by the Franklin Municipal Planning Commission, as it substantially differs from the project proposed in 2007, reports the Franklin Home Page. Canterfield would comprise 8,000 square feet of commercial retail space and a 67,000-square-foot assisted living facility, occupying a total of 6.5 acres with commercial development. By comparison the previous plan site consisted of a 97,000-square-foot assisted living facility and 40,000 square feet of commercial and retail space.

Most of the site, except Medical Development Corp’s project and a one-acre retail outparcel, will be left undeveloped as open space.

The developers have recently completed two similar centers: The Villas at Canterfield in Cumming, Ga and Canterfield of Oak Ridge, in Oak Ridge, TN. Both facilities offer independent living, as well as assisted living, including memory care. Both developments are 67,000 square feet in size offering 91 total units with 20 or 18 memory care units. Apartments range from studio to one- and two-bedroom units. Community amenities include fitness room, theater, beauty salon, library, formal dining room, game room, lounge, multi-purpose room and landscaped grounds.

Image courtesy of The Villas at Canterfield via Facebook

Belk to Spend $12M on CoolSprings Galleria Renovation and Expansion

3 Mar 2014, 4:05 pm

By Eliza Theiss, Associate Editor

CoolSprings Galleria

Charlotte-based Belk, Inc. has announced plans for a grand $12.6 million renovation and expansion project for one of its Nashville stores, which will turn the location into the brand’s flagship in the metro Nashville region. The project will focus on Belk’s CoolSprings Galleria store in the Nashville submarket of Franklin.

Kicking off in October 2014, the first phase of the project will include the construction of a new 50,000-square-foot men’s and children’s store on the first level of a former Sears building at CoolSprings Galleria. Set to be complete in March 2015, the move will increase selling space and merchandise variety. Phase two will kick off in February 2015 and will entail the complete renovation and upgrade of the main store. Set to wrap up by October 2015, this phase will also entail the relocation of Belk’s home merchandise department, currently set up in two separate stores in the mall. The home merchandise department will take up 18,000 square feet in the main store’s second floor. The relocation of the menswear and children’s department will also free up a significant amount of space in the store’s main location, which in turn will allow for expansions and upgrades at the women’s apparel, accessories and cosmetics department. Upon completion, Belk, the mall’s anchor tenant, will boast a total of 185,000 square feet at the mall. Belk acquired the CoolSprings Galleria store in 2006.

CoolSprings Galleria is owned by CBL & Associates Properties, Inc. and TIAA-CREF and features 1,117,125 square feet of gross leasable area in a catchment area of over 891,000. Opened in 1991, the mall underwent renovation in 2006. CBL also purchased the former Sears building in mid-2013 with the intent to redevelop and expand the space for high-end retailers. The deal included two Sears stores: one at CoolSprings Galleria in Franklin, TN and one at the Fayette Mall in Lexington, KY, two of CBL’s most profitable malls.

Photo courtesy of CBL Properties via Facebook

Three New Apartment Projects Rumored in Nashville

20 Feb 2014, 4:48 pm

By Eliza Theiss, Associate Editor

2300 at Berry Hill

Nashville’s apartment boom continues with proposals and plans for new projects popping up all over the city. This should come as no surprise as Music City’s employment growth is expected to outpace the national average for its fifth consecutive year with a 2.4 increase or roughly 20,000 new jobs, according to market forecasts by Marcus & Millichap.

One of the most recent projects to hit the rumor mill is a 171-unit, four-story apartment development in the Sylvan Park commercial district. According to the Nashville Post, the unnamed project pursued by Stonehenge Real Estate Group will comprise 80 percent one-bedroom apartments and 20 percent two-bedroom units. It could also have a retail building with five spaces as a new neighbor, if a development proposed by Austin Ray and Spiva Hill Investments is approved. Stonehenge is also developing the upscale one- and two-bedroom apartment project 23Hundred at Berry Hill which offers amenities such as an oversized pool, fitness club with personal trainers, summer outdoor chef’s kitchen and bike racks.

Other developers eyeing Nashville’s hot apartment scene include Texas-based Forestar Group and Phoenix Property Co.  According to The Tennessean, Littlejohn Engineering Associates is pursuing site approval on behalf of Phoenix Property for 1.22 acres off 16th Avenue South and McGavock Street in the Music Row area. The developer is eyeing the site for a 194-unit apartment project that would include a two-story above-grade parking garage, live-work units and onsite leasing. While Phoenix Property’s project remains unnamed, Forestar has dubbed its 230-unit development Music Square Flats. According to The Tennessean, Music Square Flats would be five stories tall and feature a two-level parking garage. Local engineering firm Civil Site Design Group is involved in the project.

Image courtesy of 23Hundred at Berry Hill via Facebook 

Chart courtesy of Marcus & Millichap

State Funds Community College Expansions in Metro Nashville

13 Feb 2014, 3:50 pm

By Eliza Theiss, Associate Editor

Columbia State Community College new campus rendering

As part of its Drive to 55 program, the state of Tennessee will provide over $100 million in community college projects throughout the state, including $65.4 million to two Metro Nashville community colleges, announced Gov. Bill Haslam in his recent State of the State address.

Columbia State Community College is set to receive $36.7 million in state capital investments, to fund the development of a brand new campus, which will rise on Liberty Pike in the booming Cool Springs submarket of Nashville. Columbia State has already received some state funding for its new campus: it acquired the 36-acre campus site with $6.5 million in state funding. An additional $1.7 million were also provided for architect and planning services. While the bulk of the money is being provided by the state, according to the Franklin Home Page, the community also has to chip in with $4 million or about 10 percent of the costs, as the development is a community college capital project. A silent fundraising is ongoing with a second one set to kick off after the summer 2014 groundbreaking of phase one.

The initial phase of the campus will accommodate 2,200 students, 40 percent more than Columbia State’s current capacity. It will consist of a student support and enrollment center, an arts and humanities building, a science, technology, engineering and mathematics facility and a tower. Future phases will include a health sciences and technology facility, wellness and student life center, economic and workforce development building, a baccalaureate and master’s university center, an academic and outreach/technology center as well as a fine arts center and theater, which will bring the student body to about 6,000 students.

Nashville-based Bauer Askew Architecture and Birmingham, Alabama-headquartered Hoar Construction have been contracted for the project. According to the Franklin Home Page, the current Columbia State campus will be redeveloped, but details on that have yet to be released.

Wallace South Health Sciences building riboncutting at Vol State

Volunteer State Community College in Gallatin, TN will also receive $28.7 million to construct a new classroom building. Vol State recently inaugurated a $10 million state-of-the-art health sciences building.

The Drive to 55 program aims to boost the ranks of Tennesseans holding high-education degrees, as estimates show that in 11 years, 55 percent of the population will need a degree to be employable. Currently only 32 percent of the state’s population meets that criteria.

Images courtesy of Bauer Askew Architecture and Volunteer State Community College

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

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