Blackstone Lands $168M for Nashville Manufacturing Plant

Goldman Sachs, Bank of America and Bank of Montreal provided the loan.

1740 J.P. Hennessy Drive

A fully leased industrial facility in Nashville’s Southeast Davidson County has received a $168.1 million loan, public records show. Blackstone—which last month completed its $3.2 billion acquisition of WPT Industrial REIT—obtained the loan from Goldman Sachs, Bank of America and Bank of Montreal.

The loan has a November 2023 maturity date, the records show, with three one-year extension options. WPT Industrial REIT bought the building in a $33 million double escrow deal facilitated by the sole tenant—Sinomax USA, a memory foam mattress and pillow manufacturer.


READ ALSO: While Supply Chain Slows, Logistics Real Estate Moves Fast: Report


The 505,000-square-foot, Class A building is situated in La Vergne, Tenn., on a 42.4-acre site at 1740 J.P. Hennessy Drive. Constructed in 1991, the property features one grade-level and 39 dock-high loading doors, sky lights, climate control and a 115- to 185-foot truck court.

According to local news station WKRN, Sinomax first opened its doors in La Vergne in 2017, with the location serving as a manufacturing plant expected to add 350 jobs to the region. Interstate 24 is located just 2 miles west of the property, while downtown Nashville is less than 20 miles away. Nearby industrial users include United States Cold Storage, Steel Summit, a FedEx Freight facility, and multiple others.

Diversified growth

An array of multibillion-dollar deals this year positioned Blackstone to capitalize on multiple growing sectors. Its acquisition of WPT’s portfolio—roughly 37.5 million square feet—was first announced in August, just two months after entering a definitive agreement to buy QTS Realty Trust for $10 billion, adding 7 million square feet of data center space to its holdings. In December last year, Blackstone also announced the acquisition of a life science portfolio for $3.4 billion.

Despite supply chain issues and the increasing cost of materials, to name just a few hurdles that the sector faced this year, industrial assets remain in high demand. In September, Nashville had 5.2 million square feet of new space underway, or 3.0 percent of total stock, according to a CommercialEdge report. Average rents increased by 6 percent year-over-year, while the market’s vacancy rate remained at 2.4 percent as of September, far below the national average of 5.7 percent.

You May Also Like