Saint Thomas Starts $110 M Expansion

By Eliza Theiss, Associate Editor

Determined to remain a state-of-the-art healthcare facility, Saint Thomas Hospital has not only announced plans to modernize the healthcare center, but already broke ground on a new structure.

Scheduled to be completed in early 2017, and with a total cost of $110 million, Saint Thomas’ modernization plans aim to upgrade patient-centered care by enhancing patient access and enhancing critical care and surgical services. Construction is set to take place in stages so as not to interfere with patient care.

Among the work planned at the healthcare facility is the construction of a new patient tower, which recently broke ground. The new structure will rise at the back of the campus, next to the visitor’s parking and will house services such as patient admission and pre-admission testing, essentially moving the hospital’s front door to the back of the medical campus. Other important upgrades include the renovation and expansion of 44 critical care rooms. At their current size, critical rooms have a footprint of 195 square feet. Following the expansion this will increase to 275 square feet, allowing for increased patient comfort. Some of the hospital’s operating rooms will also receive a boost in size, and 13 of the 28 operating theaters at Saint Thomas will be augmented to 520 square feet each, making them better suited for orthopedic procedures.

“This investment will make it easier for our patients to navigate within the hospital and will ensure we continue to be a leader in caring for adults in our community,” said Dawn Rudolph, president and CEO of Saint Thomas Hospital. “We want to make sure Saint Thomas Hospital remains a state-of-the-art facility for years to come,” she added.

According to the Nashville Business Journal’s coverage of the story, the new tower will total 155,000 square feet, while the total surface to be renovated within the existing facility is approximately 73,000 square feet.

Freeman White is serving as architect on the project with Turner Construction as construction manager.

Saint Thomas Hospital is a member of the faith-based, non-profit Saint Thomas Health regional healthcare system. The hospital features 541 beds, 40 of which are critical care beds, 90 special care and 140 telemetry beds.

Rendering courtesy of Saint Thomas Health

Local Firm to Receive Award for Restoration of Senior Housing Community

By Eliza Theiss, Associate Editor

Memphis, TN-based Alco Management, Inc. a leading operator of affordable housing, will soon be honored by The National Affordable Housing Management Association (NAHMA) for the turnaround of Riverwood Tower Apartments, a senior living community located in suburban Nashville. Alco’s turnaround of the property is being honored at the Community of Quality Awards March 24-26 in Washington, DC.

“It’s quite an accomplishment to be named a National Community of Quality Award winner,” said NAHMA Executive Director Kris Cook. “The process is competitive and takes into account not just a property’s structure and appearance, but the quality of its management and staff, finances, compliance scores, and other factors.” Riverwood Tower Apartments is the winner of the Outstanding Turnaround of a Troubled Property category.

Formerly known as Madison View Towers, the 33-year-old senior living community located In Nashville’s Madison suburb was purchased by Alco in 2005. At the time, the 117-unit distressed property had an occupancy rate of 76 percent. Following the purchase, Alco renamed the property and in 2006 embarked on rehabilitating the asset. Upgrades include energy-efficiency measures such as water-saving kitchen and bathroom fixtures and appliances, energy efficient windows, new HVAC units, and a new fire alarm and nurse call system, along with a new electronic entry and security camera system, and the expansion of the property’s sprinkler system. Madison View Towers was also given an interior design makeover with reimagined common areas, as well as new flooring, carpeting and a paint job. The community’s parking lot was also redesigned to provide additional accessible parking. The grounds were landscaped. Alco also hired extra management staff.

Following the rebranding and repositioning of the property, Alco turned operations at Madison View Towers cash flow positive and brought occupancy to 100 percent within two years.

Photo courtesy of Alco Management, Inc. via Enhanced Online News

$60M Condo and $80M Apartment Projects Stir Up Nashville

By Eliza Theiss, Associate Editor

Thanks to favorable market conditions, developer LaRawn Scaife Rhea’s 34-unit luxury condominium project The Manning at Belle Meade could soon restart development. According to the Nashville Business Journal, the $60 million project planned for Woodmont Boulevard has been getting attention from potential financing partners. If financing is secured, the project, which was supposed to break ground in January 2008, will start construction by the end of 2013 and units will be put on the market once again.  The Manning condos were originally priced between $950,000 and $5.5 million with about 50 percent of units sold by the time construction halted.

Some of the features planned at the 10-story luxury project included private wine storage, a formal grand salon, extensive walking areas and estate gardens, full-time staff, concierge service, personal trainer service, personal shopping service and pet care service. Units were to range between 1,800 and 6,000 square feet and boast balconies and terraces. According to the Nashville Business Journal, the project’s amplitude has not been curtailed.

LaRawn Scaife Rhea and husband Richard have also developed upper-high-end projects in the US and the Caribbean.

In other multifamily luxury news, Metro Nashville has released a construction permit for foundation work on developer Ray Hensler’ $80 million luxury apartment project, which means things are going smoothly for the highly anticipated development. According to the Nashville Business Journal, the still unnamed $23 million Gulch apartment high-rise, the first one in Music City in over a decade, is set to break ground before the year is out and work will be completed in the second or third quarter of 2014.

Featuring 312 units with some of the largest floor plans in Nashville, rents are expected to range between $1,400 and $3,500 per month. Its luxurious community amenities will include a 2,800-square-foot fitness center, an 82-foot saltwater pool, game room complete with billiards, sky terrace featuring a community kitchen, and hotel-style lobby with round-the-clock concierge and security. A 7,000-square-foot restaurant will also open at the location.

Local firm Hastings Architecture Associates is reportedly lead architect on the project, while JE Dunn Construction Corp. is general contractor.  Ray Hensler’s development partner is Fort Lauderdale-based Stiles Corp. The duo previously developed Sunrise Harbor, the highly-acclaimed $60 million 368-unit Fort Lauderdale luxury apartment project featuring a marina, yacht slips and retail shops.

Photo of Sunrise Harbor courtesy of Sunrise Harbor Apartment’s Facebook page

Chart courtesy of CBRE

First Hotel to Open in Gulch Has $17.5 M Price Tag

By Eliza Theiss, Associate Editor

Details of the first ever hotel to be built in the posh district of The Gulch have surfaced, with the Nashville Business Journal reporting that the property, currently in construction has a development price tag of $17.5 million, just short of $139,000 per unit. The hotel, a future Fairfield Inn & Suits by Marriott is being developed by Chattanooga, TN-based Vision Hospitality with Brentwood, TN-based Biscan Construction as main contractor.

According to a press release the aptly named Fairfield Inn & Suites, Nashville Downtown @ the Gulch will be eight stories tall and feature 126 rooms. The building’s modern design will complement the contemporary Gulch architecture. It will also offer panoramic views of the Nashville skyline. The property, expected to open in the first quarter of 2014, will pursue LEED certification to further integrate itself into the neighborhood—The Gulch has been certified a LEED Green Neighborhood since November 2009.

The hotel will feature amenities such as a 1,500-square-foot meeting room and a rooftop bar, according to the Nashville Business Journal.

Plans to develop the Fairfield Inn & Suites, Nashville Downtown @ the Gulch have been in motion for over a year now. In late 2011 the Nashville Post reported that Vision Hospitality purchased two parcels in The Gulch for $2.3 million. The developer, through its Nashville presence Vision Nashville Gulch LLC, picked up a warehouse from Purcell Development for $1.31 and an adult bookstore from Blue Sky Holdings for a little over $1 million. Both sites are on Division Street, granting the future hotel easy access to Music Row, Music City Center and Downtown Nashville.

Fairfield Inn & Suites, Nashville Downtown @ the Gulch is one of eight hotels either in operation or development by Vision Hospitality. The company’s Tennessee portfolio includes two properties in the Greater Nashville region; the Hyatt Place Nashville Airport and the Hilton Garden Inn Nashville/Franklin/Cool Springs with two additional hotels in development; the Residence Inn and Courtyard by Marriott in Murfreesboro, TN.

Rendering courtesy of Vision Hospitality

West End InterContinental Hotel Will Finally Happen

By Eliza Theiss, Associate Editor

It seems Nashville just can’t get enough of hotels these days. After years of uncertainty, an InterContinental hotel is finally coming to Music City’s West End Summit, the 900,000-square-foot office mega-development helmed by local real estate guru Alek Palmer. The Nashville Business Journal recently quoted the developer as saying the hotel deal is “99.9 percent done.”

The same report also states that the megaproject’s hospitality component will have 230 rooms on 18 floors, and will feature a modern design. The hotel will sit between West End’s two 20-story office towers. The full-service hotel, described as “four-and-a-half stars” is expected to open a couple of months after work on the office towers wraps up in 2015.

Developer Palmer has been trying to bring an InterContinental property to the area for several years now. According to a different Nashville Business Journal report, a slightly larger hotel property, featuring 285 rooms, a 10,750-square-foot ballroom, 18,000 square feet of meeting space, fitness center, spa and several dining venues was announced back in 2006, when West End was rumored to be completed by 2008. In the end, the hotel, along with the entire West End project, got pushed back.

As previously reported here, Alex S. Palmer & Co. will be developing West End Summit in Nashville’s Midtown. The development, one of the biggest in Music City’s history, will create 900,000 square feet of Class A office space, 475,000 square feet of which are already under lease contract to Parallon Business Solutions and Sarah Cannon Research Institute (SCRI), two HCA Holdings Inc. affiliates that will consolidate their operations at 1600 West End. Parallon, which will be taking up 350,000 square feet of office space, will consolidate 750 area jobs at the location, while SCRI will relocate 200 jobs to its 125,000-square-foot lease. With both companies set to increase their workforce by 2017, West End is expected to bring 2,000 jobs to Midtown. A 2,800-car parking garage, high-end retail, signature restaurants and state-of-the-art fitness center will also be created at the site. West End is expected to cost $265 million.

Image courtesy of Alek S. Palmer & Co.

Chart courtesy of Marcus & Millichap

Regent Homes Plans Boutique Luxury Condos in Nashville

By Eliza Theiss, Associate Editor

After a long stretch in which apartment news ruled the Nashville multifamily scene, Tennessee developer Regent Homes and Companies has announced plans for a 16-unit luxury condo development in Hillsboro Village.

The yet-to-be-named development will rise at the corner of Acklen Av. and 24^th, where Regent Homes President David McGowan is closing on two adjacent parcels. A 1965-built apartment community currently resides on the site of the planned boutique development.

The $4.5 million project will be comprised of two-bedroom units of 1,500 square feet featuring balconies and flex space. Amenities will include controlled secure access, elevators and high-end traditional finishes. The brick and stone façade is described as “Jacksonian” in style. Units are expected to cost between $360,000 and $375,000 and will be ready by the end of 2013. Groundbreaking is set for March, as the developer expects to take care of the necessary site clearing process by the end of February.

The luxury condo development, in close proximity to Vanderbilt University and its medical center, will be targeting related professionals. “For people who work at the university, the No.1 thing they’d like to be able to do is find a home they can live in and do away with at least one if not both cars,” McGowan said.

Designs for the property have yet to be released.

Founded in 2000, Regent Homes is the sixth-largest developer in the Greater Nashville area.

Regent’s condo project will probably find a ready market. According to a July 2012 report by the Nashville Downtown Partnership, there are no condominium projects in the works for Nashville’s greater downtown area. In addition, steady and consistent sales numbers reported throughout 2012 are expected to result in increased demands and sales prices. The average unit price in for first quarter 2012 was $270,071 up from the same period in 2011 where it hit $253,142.

Image of Lennox Creekside community courtesy of Regent Homes

 Chart courtesy of the Nashville Downtown Partnership

McKinney Properties Puts The Cumberland on the Market

By Eliza Theiss, Associate Editor

It’s no secret that Nashville is the new “it-girl” of the multifamily market. After consistently making list after list of best places to live, work and play—with a hotel boom well underway, a major convention center soon to open and even a hit TV show set in Nashville—Music City’s popularity is on an upswing… and so are real estate prices.

Add to this a nationwide trend of returning to urban core living and you get the perfect time to sell a downtown high-rise, such as The Cumberland, a 256-unit apartment high-rise located in Nashville’s downtown living corridor. According to the Nashville Business Journal, the 555 Church St. apartment building has been put on the market by Pittsburgh-based owner McKinney Properties, Inc. and is being marketed by CBRE.

The 24-story Tony Giarratana-developed property opened in 1998. The central business district property features 256 units totaling 227,932 square feet of apartment space and 33 privately owned condo units on the top four floors for a total of 41,206 square feet, according to CBRE’s listing. The ground floor features three retail spaces totaling 3,408 square feet as well as a common area. The Cumberland also boasts a six-story underground parking garage of which 54 parking spaces are privately owned. Units range from one-bedroom, one-bath 600-square-foot apartments to two-bedroom, two-bath 1,152-square-foot rentals, with an average apartment size of 890 square feet.

Units feature upscale kitchens equipped with electric ranges, frost-free refrigerators, dishwashers, garbage disposals, microwaves and stainless steel appliances. They also provide residents with generous closet space, washer/dryers, designer bathrooms, large windows, private balconies and individual climate control. Community amenities include a new media center, a business center with conference room, state-of-the-art fitness center, clubroom, private courtyard with grilling stations, lobby and concierge services, onsite guest suite, laundry care center, valet dry cleaning and valet car wash.

The building is a condominium. Units are owned and being offered via a master condominium deed at market rate on an all-cash base.

Photo courtesy of The Cumberland Apartments’ Facebook page

Chart courtesy of Colliers International

Crescent Resources Plans New Residential Community, Purchases 221 Acres

By Eliza Theiss, Associate Editor

Crescent Resources, LLC, a long-time developer and manager of both commercial and residential properties throughout the Southeastern US and Texas, has just purchased 221 acres of land in Franklin, Tennessee, from South Carothers Partners, LLC.

Located off the I-65 corridor, to the east, just a mile south of Murfreesboro Road, the 221-acre tract of land will be the site of Lockwood Glen, a new master-planned community consisting of 240 apartment units and up to 384 single family homes, intended for sale. Planning has begun for the community that will feature several family-friendly amenities. Pearl Street Partners, LLC, a Brentwood, TN-based development and management firm has been named development manager, working in concert with Crescent Resources.

Construction is set to begin in March, with the initial work on phase one, consisting of 70 single family homes and 27 townhomes. Home builders Celebration Homes, Goodall Homes and Regent Homes of Nashville have committed to purchase the first phase, set to be completed in early 2014. The first homes are reportedly expected to sell at prices starting in the low to mid $200,000s.

Located in Williamson County, Lockwood Glen will be three miles north of Cool Springs, and will feature about one mile of frontage on the recently approved Carothers Parkway extension, meaning Lockwood will be just a five-minute drive from major employment hubs. According to the U.S. Census Bureau, Williamson County grew 44.7 percent between 2000 and 2010 and with major commercial developments under way it’s expected to keep growing.

Charlotte, NC-based Crescent Resources is no newcomer to Nashville. Among the company’s most significant accomplishment in this growing market is the 428-unit Venue at Cool Springs luxury community, an Audubon International silver-certified project, as well as the one million square-foot Class A office development Corporate Centre at Cool Springs. Crescent has developed 50 master-planned and over 15 multifamily communities throughout the Southeastern US and Texas, with many more in various stages of development. Crescent Resources also owns 60 acres of land entitled and slated for a 750,000-square-foot Class A office development project in Cool Springs.

Image of Venue at Cool Spring courtesy of Crescent Resources

Nashville Hospitality Market Going Strong – New $65 M Hotel Project Planned

By Eliza Theiss, Associate Editor

With the 1.2 million square foot Music City Center’s grand opening just around the corner, it’s no surprise that hotels are springing up all around Nashville, especially in the neighborhood of the state-of-the-art convention center.  In fact there are no less than six hotels currently under construction in Nashville’s downtown market and according to Nashville Post, two more are about to join the party. According to the publication, Atlanta-based North Point Hospitality plans to develop, not one, but two Marriott-branded hotels in the South Broadway (SoBro) corridor of Nashville.

The $65 million project would build two Marriott hotels on a tract of land with 175 feet fronting Korean Veterans Boulevard and 285 feet fronting Fifth Avenue, already zoned for hotel development. The project will be developed in two phases, with the first one planned to kick off construction by the end of 2013. Phase I consists of a 200-key, 14-story Residence Inn by Marriott mainly fronting Korean Veterans Boulevard and an above-ground 200-car four-story parking garage. Phase II of North Point’s project, a 150-key SpringHill Suites by Marriott, is expected to break ground in early 2015. The hotel however, will be developed atop the then-finished parking garage, after another 50-car parking level is added, resulting in a 16-story structure fronting Fifth Avenue. The entire project is expected to be completed in 2016, but is still subject to Metropolitan Development and Housing Agency Design Review Committee approval regarding the buildings’ facades. When finished, the L-shaped structure will share a street corner with Music City Center.

North Point Hospitality is no stranger to the Nashville hotel development market. It previously developed a 194-room Hilton Garden Inn in the Vanderbilt/West End area that was completed in 2009, as well as Home2Suites by Hilton, in the same area. The 119-unit hotel was completed in 2012. According to the Nashville Post, the properties share a parking garage and both were sold to a real estate investment trust. Founded in 1978, North Point has since developed 32 hotel properties from the ground up, totaling 3,060 rooms at a total cost of $322,100,000.

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Photo credit: Google Maps

Chart courtesy of Marcus & Milichap

900,000 SF Mixed-Use West End Summit Brings 2,000 Jobs to Midtown

By Eliza Theiss, Associate Editor

Nashville’s Midtown is about to see one of the biggest developments and investments in the city’s and region’s history: the long-marketed, two-tower West End Summit by Alex S. Palmer & Co. featuring a 900,000-square-foot Class A office space component.  

After years of aggressive marketing, the project is finally ready to go into preconstruction, as its two anchor tenants have signed their leases for a combined 475,000 square feet of office space, according to the Nashville Business Journal. Parallon Business Solutions and Sarah Cannon Research Institute (SCRI), both HCA Holdings Inc. affiliates, were officially announced in late September 2012 as anchor tenants for the twin tower megaproject, located at the corner of West End Ave. and Sixteenth Ave. Both companies will establish corporate headquarters at West End Summit as well as consolidate area operations into one location, bringing approximately 2,000 employees to Midtown. Parallon, which will be taking up 350,000 square feet of office space, will consolidate 750 jobs from Williamson County to the new location. Furthermore, the company plans to increase its workforce by 800 by 2017. SCRI will relocate 200 jobs in the area to its new corporate headquarters, and it plans to double its workforce by 2017. SCRI will lease 125,000 square feet. Both companies have signed 15-year leases starting March 2015. The remaining 300,000 square feet of office space will be leased either to Parallon and SCRI—to accommodate possible future expansions—or to other interested parties.

Both high-rises, one boasting 17 levels, the other 22, will also feature other commercial components such as high-end retail, signature restaurants, a state-of-the-art fitness center, and a luxury boutique hotel. A 2,800-car parking facility will also be incorporated. West End Summit is expected to cost $265 million.

Nashville-based HCA is one of the leading providers of health care services in the US. Parallon supplies health care providers with business solutions services, while SCRI is a global research organization focused on therapy and drug-advancement in the fields of cardiology and oncology.

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Image courtesy of Alex S. Palmer & Co

Chart courtesy of CBRE

New One Nashville Tenant Brings Occupancy to 99 Percent

By Eliza Theiss, Associate Editor

One Nashville Place, one of Music City’s most attractive office towers, has landed a new tenant bringing its overall occupancy to 99 percent. Daymark Realty Advisors has announced signing leading financial institution Region Bank for a 12.5-year lease at the downtown business districts skyscraper. Region Bank will occupy 100,000 square feet at the Class A office tower which will contain Regions’ Mid-American region and Middle Tennessee area headquarters; 225 employees will be housed at the new location. The Nashville Business Journal recently reported that the move is expected to take place by the end of Q2 2012. Regions currently leases 250,000 square feet in the 28-story Regions Center at 315 Deaderick Street, but it utilizes around half of that space. Regions’ move was made possible by U.S. Bank’s expected move to the nearby 33-floor AT&T building.

“We could not be more pleased to have a firm of Regions’ sound reputation and high caliber business joining the One Nashville Place community,” declared Mike Waddell, executive vice president, asset management, for Daymark. “We developed a great working relationship with the Regions Bank team during lease negotiations and achieved an agreement that will benefit both parties for many years to come” added Waddell.

Santa Ana, Calif.-based Daymark Realty Advisors manages One Nashville Place on behalf of an investment group comprised of individual owners. The 25-story office tower at 150 Fourth Avenue North is Nashville’s ninth tallest tower at 359 feet. Completed in 1985 and designed by Morris Architects, the property is in a postmodern style and has an octagonal plan, dark reflective glass façade and mansard roof, earning it the nickname R2D2, after the Star Wars movie character. The property features 393,000 square feet of rentable space. Onsite amenities include 24-hour security, on-site banking, on-site building management, FedEx, DHL, and UPS Drop Boxes, computerized energy management security that lowers energy costs, and a building conference center with seating for 75, outfitted with a catering kitchen. The property boasts state-of-the-art communications and building electronics, such as a technologically advanced telecommunication system and fiber optic data connections.

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Photo courtesy of Kaldari via Wikimedia Commons

Chart courtesy of CBRE

Third Expansion for Biomed Incubator Cumberland Emerging Technologies

By Eliza Theiss, Associate Editor

Cumberland Emerging Technologies, Inc. (CET), a company specialized in bringing early-stage biomedical technologies from their Mid-South research phase to the marketplace, has announced the completion of its newest expansion.

The company’s third expansion in 10 years, this latest increase in space and capacity brings CET’s current size to over 14,000 square feet—more than doubling the company. The expansion provides CET with more office and storage space as well as additional wet labs in the Life Sciences Center.

Located in downtown Nashville’s historic “Gateway to Nashville” building, the Life Sciences Center anchors an emerging high-tech corridor taking shape in Music City’s SoBro submarket. The center was fully leased prior to expansion, housing six life sciences firms. The new space is intended to allow current tenants to expand, as well as providing space and infrastructure to a number of start-up companies.

“We opened the facility in 2002 because we saw a need for wet lab space and other support services among emerging life sciences firms. Since then, we have expanded the facility three times as that demand continues to grow. This expansion is a significant milestone for CET and Nashville’s growing life sciences community,” according to Chief Executive Officer of Cumberland Pharmaceuticals and CET A.J. Kazimi.

A joint project of Vanderbilt University, Cumberland Pharmaceuticals and Launch Tennessee (previously known as the Tennessee Technology Development Corporation), CET aims to advance biomedical technologies and products conceived at academic research centers toward the commercial marketplace by providing expertise on intellectual property, regulatory, manufacturing and market issues as well as managing the development and commercialization process for select projects.

Photo courtesy of Google maps

Windstream to Build 21,000-Sq.-Ft. LEED Gold Data Center

By Eliza Theiss, Associate Editor

Little Rock, Ark.-based Windstream Corp. has announced that Windstream Hosted Solutions will open a new data center in Nashville. Windstream Hosted Solutions is a provider of enterprise-class managed hosting solutions, boasting a nationwide network of data centers.

The new facility will be an enterprise-class data center of 21,000 square feet, featuring 10,000 square feet of raised-floor data center space. The facility will feature a Tier III modular design for easy capacity expansion as needed, 360 tons of cooling capacity that will keep a constant indoor temperature of 74 degrees Fahrenheit, a 2500kVa utility capacity that is capable of increasing to 12500kVa, and redundant OC-192 10Gbps circuits that connect to multiple Windstream core POP sites with fully redundant peering. In addition, the facility will feature a fully staffed, nonstop Onsite Network Operations Center that will provide network and facility security, monitoring, and technical support.

Another major feature of the development will be its energy efficiency and eco-conscious design, as all Windstream data centers are built to LEED Gold standards. Keeping in line with Windstreams green code, the facility will implement sustainable and environmentally conscious design, construction, operation and maintenance.

“Our customers demand a superior level of services and reliability, and these new centers, like all of Windstream’s facilities, are designed to exceed their expectations,” declared Kip Turco, Windstream’s senior vice president of data center operations, in a press release. “[The data centers] are being built to the highest specifications and will enable Windstream to provide the level of service businesses demand, ranging from point-managed solutions such as managed security or storage to the complete delivery of Infrastructure as a Service.”

The Nashville facility is expected to become operational in 2013. Windstream has been steadily increasing its data center network throughout 2013 by opening a location in Little Rock, Ark. earlier this year, as well as a recently completed facility in McLean, Va.

Windstream Hosted Solutions provides managed and dedicated hosting options, including co-location, cloud computing and disaster recovery. Windstream Corp. offers network communications—including cloud computing and managed services—to businesses throughout the U.S., as well as broadband, phone and digital TV services to preponderantly rural area consumers.

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Photo courtesy of 123net via Wikimedia Commons

Eleven North Fetches Record Sum; New Hotel Planned for Gulch Area

By Eliza Theiss, Associate Editor

If we needed any more proof of how dynamic the Nashville multifamily market is, we just got it with the announcement of Eleven North’s record-setting sale price. According to a Nashville Business Journal report, Chicago-based Mesirow Financial recently shelled out $58.7 million on the 302-unit luxury apartment development. That’s $195,000 per unit, significantly higher than the previous record holder, the Velocity in The Gulch project that sold for $170,000 per unit. However, Velocity continues to reign in the highest price per square-foot category, according to The Tennessean.

Located at Charlotte and 11^th Ave. North, in the posh Gulch neighborhood, Eleven North was developed by Georgia-based TriBridge Residential LLC and Stonehenge DCM at the former Polar Icehouse Storage property. It received its construction permit in September 2011 and went on the market in July 2012, before finishing construction. Eleven North, which recently opened with 90 percent of apartments leased, features one-, two- and three-bedroom luxury units. Apartments range between 710 square feet and 877 square feet and amenities include a pool, fitness center, rooftop lounge, open-air kitchen.

Jones Lang LaSalle’s Vincent Lefler was the listed broker for the transaction.

In other news, The Nashville Business Journal reported that Metro Nashville has issued the necessary permit to demolish a defunct adult video store in the Gulch. Worth $38,000, the demolition will clear the way for a hotel to be developed by Chattanooga, TN-based Vision Hospitality Group. According to the developer’s website, the hotel will be a Fairfield Inn & Suites that is expected to open fall 2013.

Fairfield Inn & Suites properties usually feature a fitness center, swimming pool, business center, complimentary Wi-Fi and high speed Internet, large cable TV sets, complimentary breakfast, coffee, tea and newspaper, free parking, same-day dry-cleaning and laundry facilities, among other amenities.

Other Vision Hospitality Nashville area hotels include the Nashville Airport Hyatt Place, the La Quinta Inn and Suites in Smyrna and the Cool Springs Hilton Garden Inn.

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Photo credit: Eleven North’s Facebook page

800-Key Omni Nashville Hotel Designed by Looney and Associates Tops Out

By Eliza Theiss, Associate Editor

The much-anticipated 800-key Omni Nashville Hotel announced topping out 17 months after groundbreaking, marking an important step in its race to open in the fall of 2013.

Located in downtown Nashville, on Fifth Avenue, between Demonbreun and Korean Veterans Blvd., the Omni Nashville Hotel is one of the significant elements in the revitalization of Music City. “The hotel, along with the new Music City Center and expanded Country Music Hall of Fame and Museum, will add a new level of energy to our downtown, making Nashville an even more vibrant destination,” Mayor Karl Dean, declared in a press statement. He added, “This construction milestone at the Omni Nashville Hotel brings our city another step closer to the opening of one of the most distinctive convention center campuses in the country.”

The 800-key, 21-story hotel will feature 80,000 square feet of state-of-the-art event and meeting space, with flexible partitioning options. Meeting space highlights include a 25,000-square-foot ballroom and a 15,000-square-foot junior ballroom, as well as 21 additional breakout rooms. The hotel will incorporate a full-service business center and up-to-date technology, including state-of-the-art audio/visual equipment and high-speed internet. Further highlights include a fitness center, a signature Mokara Spa and a rooftop pool and deck complete with ample views of Nashville. Five dining and entertainment venues will be offered at the Omni Nashville, among them outdoor dining, a steak and chop house, a farm-to-table restaurant and, in accordance with the city’s legacy, live music space. The hotel will be connected to the Country Music Hall of Fame and Museum on three levels.

Designed by Looney and Associates, the building will make use of natural materials, exposed steel and limestone. The hotel, constructed by Brasfield and Gorrie, is aiming for a LEED Silver New Construction Certification. Green features include recycled and locally sourced construction materials, water efficient landscaping, water-efficient fixtures and green power usage.

Since the Omni Nashville Hotel began taking reservations in August, 175,000 room nights have been booked.

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Photo courtesy of Omni Hotels’ Facebook page

McCann Realty Partners Picks Up 336-Unit Apartment Asset

By Eliza Theiss, Associate Editor

Richmond, VA-based McCann Realty Partners, LLC has announced the purchase of the 336-unit Discovery at Mountain View Apartments in Nashville.

“We have been attempting to enter the Nashville market for quite some time and Discovery at Mountain View created an opportunity to do so.  We believe rents will continue to grow for the next several years and are actively looking to add more apartments in Nashville,” said Brand Inlow, chief investment officer at McCann.

The 2009-built 336-unit three-story garden-style community is located off of Murfreesboro Pike in suburban Nashville, with easy access to downtown Nashville, Murfreesboro, Smyrna, Nashville International Airport and Brentwood. Community amenities include a resort-style swimming pool, a fitness center, a spacious clubhouse and direct access garages.

The purchase was financed by a seven-year, 3.55 percent fixed rate Freddie Mac loan, originated by Jones Lang LaSalle. Pegasus Residential, LLC, the 2009-founded third-party management company has been tapped to handle property management.

McCann Realty Partners teams with institutional capital sources to acquire, develop and manage Class A and value-add apartment communities of 150 units or more in the Southeast, Southwest, Mid-Atlantic and adjacent regions. McCann is currently expanding its portfolio in the Mid-Atlantic, Southeast and Texas. Discovery at Mountain View Apartments is its first multifamily community in the Nashville market.

According to a report by The Nashville Business Journal, McCann paid $31.4 million or around $93,000 per unit for the property previously known as The Springs at Mountain View Apartments. The seller is identified as Continental Properties Company Inc. of Menomonee Falls, Wis.

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Photo courtesy of McCann Realty Partners

Streets of Brentwood Mixed-Use Project to Request Zoning Hearing

By Eliza Theiss, Associate Editor

Developers of the ambitious Streets of Brentwood mixed-use project in Nashville’s Brentwood submarket are headed to the Brentwood City Commission for a zoning request hearing.

H.G. Hill Realty Company and GBT Realty Corporation, which formed a joint venture in February 2011 for the project, need a zoning change for the development to move forward. According to H.G. Hill Realty, the request filed for the 16.98-acre estate is for a zoning change from C1-Commercial Office to C4-Commercial Town Center in order to develop the mixed-use town center project.

“After many months of planning, we are pleased to deliver to Brentwood a development concept that complements the vision the City Commissioners had when they expanded the boundaries of the Town Center,” stated H.G. Hill Realty CEO Jimmy Granbery.

Indeed, Streets of Brentwood will be quite an impressive undertaking. The project will reside on a total of 16.98 acres at the corner of Franklin Road and Maryland Dr. The 970,212-square-foot development will be a mixture of residential, retail, office and hospitality properties. According to Streets of Brentwood’s website, around 413,000 square feet of office space will be developed in two four-story structures just under 100,000 square feet and two buildings over the 100,000-square-foot mark. Four stand-alone retail/restaurant constructions (ranging from 3,730 square feet to 14,000 square feet) and two mixed-use (residential-retail) developments will bring the total retail component to approximately 140,000 square feet. One four-story mixed-use property will contain 120 residential units above 39,000 square feet of retail space, while a second four-story mixed-use structure will locate 130 residential units above 60,000 square feet of retail. A 50,000-square-foot theater and 2,722 parking spaces will also be constructed, as well as a 150-key hotel. Over 1,800 parking spaces will be found in a parking garage located at the center of the Streets of Brentwood.

“GBT is proud to partner with H.G. Hill Realty in bringing Middle Tennessee its first true mixed use lifestyle center,” affirmed George Tomlin, president and CEO of GBT. “This will be a game changer in that it provides a true work, shop, eat, stay and play environment all in one walkable location.”

H.G. Hill Realty Company and GBT Realty partnered in February 2011 to purchase 11.67 acres off Franklin Road, which also included the 100,000-square-foot former headquarters of Murray Ohio Corporation. The joint venture is also currently under contract to acquire the 5001 Maryland Way Tennessee Baptist Convention property.

The request is scheduled to be heard at the November 12 Brentwood City Commission meeting. Mike Walker, an official with the City of Brentwood declared, “The City staff is currently undertaking a detailed review of the proposal with the goal of having recommendations to the board by the meeting.”

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Photo courtesy of Streets of Brentwood

Chart courtesy of CBRE, Inc.

The Southeast’s Largest Mixed-Use Property Sells Commercial Space

By Eliza Theiss, Associate Editor

Terazzo, the spectacular mixed-use mid-rise at 700 12^th Ave South in Nashville’s upscale Gulch neighborhood has sold its commercial component. 

The Nashville Post reports that the 100,000-square-foot office and retail component of the development was recently sold to a private investor group identified in the Davidson County Register of Deeds as Nashville Terazzo Partnership. According to the same filing the general partnership paid $19 million for the space and filed an $11 million deed of trust, but none of the papers filed indicate what entities are behind the partnership.

The Class A, Silver LEED-certified development has been on the market since spring 2011. The seller was Canyon-Johnson Urban Funds, the entity that lists former NBA star Magic Johnson as a Partner. Canyon Johnson invested $20 million in Terrazzo in 2007.

After representing the seller in the transaction, Cushman & Wakefield|Cornerstone Commercial Real Estate Services will reportedly be staying on with the new owners to provide property management and leasing services.

The 14-story green development opened in 2009 at a cost of $68 million. It features 117 high-end condominiums atop approximately 100,000 square feet of office, retail and restaurant space. Terazzo benefits from classic contemporary architecture with mid-century design influences.

The commercial component of Terazzo features 24/7 concierge services, secured and monitored access, and separate commercial parking as well as separate commercial elevators. Retail space is available at street level and features expansive glass, up to 22-foot ceilings, and lobby or street-level entrances. Office space is located on floors two through four and it offers up to 28,000-square-foot-floor plates. The commercial component is 82 percent leased.

Condominiums feature 11-foot ceilings, oversized terraces, gourmet kitchen with Italian cabinetry and stainless steel professional appliances, bamboo hardwood floors and master baths outfitted with vanity cabinets, soak tub and separate tiled showers. Residents enjoy a 44-hour concierge service, access to a controlled underground parking lot and bike parking, a large clubroom, outdoor lap pool, fitness and cardio center, climate-controlled storage units, dog walk, private residential elevator and wireless internet access throughout the building.

Terazzo is the largest mixed-use/residential high-rise in the Southeast to achieve the Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council, the first LEED-certified high-rise in downtown Nashville and the first LEED certified mixed-use high-rise in Tennessee. Green features include low-E glass that provides natural light in 96 percent of interior space, energy-efficient lighting and mechanical systems, Energy Star appliances, water-efficient fixtures and landscaping, low VOC paints and sealants, on-site recycling stations, green housekeeping, stormwater management, green rooftop terraces, light colored paving and roofing and underground and covered parking with reserved garage parking for fuel-efficient and low-emission vehicles as well as secure bike parking. One fourth of the development’s building materials are sustainable or high in recycled content as well as locally extracted or manufactured, and 75 percent of construction waste was recycled.

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Photo courtesy of Terazzo’s Google+ Page

Chart courtesy of CBRE, Inc.

Gallatin Park Apartments Affordable Housing Community Opens

By Eliza Theiss, Associate Editor

Miller-Valentine Group has officially opened Gallatin Park Apartments, a 48-unit affordable housing community in Gallatin, TN, a suburb of Nashville, TN.

Gallatin Park Apartments is the result of the efforts of Miller-Valentine Group and RBC Capital Markets, Bank of America, the Tennessee Housing Development Agency (THDA), and the City of Gallatin.

Located at 271 Albert Gallatin Avenue, on the northwest corner of Broadway (US-31) and Albert Gallatin Boulevard, the community sits in the eastern part of Gallatin. The development is comprised of two- and three-bedroom apartments that range from 910 to 1,016 square feet. All units feature two bathrooms, laundry rooms with washer-dryer connections, walk-in closets and patios or balconies. Central air conditioning, high speed internet access, a business center and onsite management are also available at Gallatin Park Apartments as well as a playground area, a community clubhouse and outdoor seating.

Furthermore the community is located across the street from the Gallatin Civic Center which features a fitness, weight and aerobics center as well as an indoor pool, indoor track and racquetball courts. And a large city park with tennis courts, a pool and baseball diamonds is adjacent to the new apartment community.

The garden-style development benefits from a high-end look, but offers affordable rental rates made possible by a complex financing package which includes subordinated financing from the Tennessee Housing Development Agency (THDA) and Section 42 Housing Tax Credits. The target demographic for this workforce apartment community is moderate income families. “Gallatin Park Apartments allows the growing businesses in the Gallatin market to have local affordable housing options for their valued employees,” according to Miller-Valentine Residential Development President Dave Liette. 

The new development has already had a significant influence, generating $3.8 million in revenues for the local economy in the form of construction wages and revenue for small businesses and proprietors of the area. Gallatin Park Apartments is also expected to generate approximately $400,000 in taxes; furthermore, 59 jobs have been created by the new apartment complex.

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Rendering courtesy of Miller-Valentine Group

Chart courtesy of the Nashville Downtown Partnership

Creative Campus Pantheon Park in the Works for Music City

By Eliza Theiss, Associate Editor

Historically a place of creativity and vibrant cultural life, Music City is again considered one of the most promising cities of the future. Since it appeals to a younger demographic, it’s not surprising that entertainment-oriented industries consider Nashville a viable investment for their operations, which is exactly what McIntyre Ventures LLC is betting on with its proposed Pantheon Park campus.

In the works since 2011, Pantheon Park would become a destination for creative types to study and produce “the next generation of entertainment technologies,” according to the project’s marketing team. Pantheon Park would include a range of services including performance halls and various event venues, multi-arts facilities, academies, production studios, entertainment and technology accelerators.

According to The Tennessean, McIntyre Ventures has selected 7.5 acres bounded by Eighth Avenue South, 10th Avenue South, Demonbreun Street, Lea Street and Clark Street and across from the new Music City Center as the location for Pantheon Park. This location could cost up to $40 million. If acquired, extensive demolition will be needed for existing structures such as the United Methodist Publishing House. Plans to acquire the site, however, have yet to be confirmed by developers.

The performance hall at Pantheon Park would be capable of accommodating up to 2,400, and would include an orchestra enclosure and canopy, full theatrical lighting, and multiple stage configurations along with performance green rooms and lounges, three additional event halls with modular seating and lighting, and recording studios—all connected with wireless and fiber optics to create superior production and performance facilities. A rooftop terrace with indoor and outdoor lounges, a wood-burning fireplace and engaging views of downtown Nashville would add to the facility’s attraction. The terrace, capable of accommodating 500, would also feature a catered rooftop restaurant, café and espresso bars, celebrity chefs and international cuisine as well as a tent for inclement weather.

Multi-arts facilities on site would include the Cherokee Scoring Stage Studio, Insomnia Studios and Redundant Broadband Pipe and Power. Facilities would feature 3D video production and projection and multi-purpose theatrical lighting systems. Cherokee Studios, designed by A&R Studio Design, would incorporate vintage analog equipment with state-of-the-art recording and sound engineering capabilities. Two floors of the studio building would offer computer arts facilities for high-end post-production, multimedia production and digital products testing. The top floors of the studio building, consisting of Class AA office space, would be occupied by film production and post-production companies.

An array of private STEAM (science, technology, engineering, art, and math) state-of-the-art middle and high schools—as well as music, design and technology-focused private university classes—would offer the education component that Pantheon project developers have embraced.

Pantheon’s services would include business support, on-site access to investment funding, tech support, legal services, management support, marketing, accounting, 24-hour in-house security, concierge services such as transportation, childcare, dry cleaning and many more. The Cumberland Center, a university-business alliance devoted to supporting new innovation, would offer counseling IT & entertainment ventures through the developmental stage to commercialization. IP law firms, accounting firms, marketing firms, temporary management and VC firms, market leading hardware and software companies and service providers are expected to have significant representations at pantheon.

Themed public restaurants and retail space at pantheon Park would be designed to attract the general public, especially with the campus’ diverse architecture. Every block would have its own specific architecture, a movie set frontage that would double as movie-set backdrops. Frequent shuttles would link the campus to areas such as Music Row, The Gulch and the university areas.

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Photo credit: pantheonpark.com