Innovatus Capital Partners Buys Nashville Office Portfolio
The two buildings add up to more than 340,000 square feet and traded for nearly $64 million. The properties last changed hands in early 2017.
Smith/Hallemann Partners has sold Highland Ridge I and II in Nashville, Tenn., to Innovatus Capital Partners for $63.6 million, according to public records. The two buildings total 340,642 square feet of Class B office space in the city’s Donelson-Hermitage submarket.
The 169,209-square-foot Highland Ridge I, located at 565 Marriott Drive, and the 171,433-square-foot Highland Ridge II at 555 Marriott Drive are situated just northeast of the intersection of Interstate 40 and Briley Parkway, near Nashville International Airport. Two other office buildings—both owned by Gaedeke Group—are on the Highland Ridge campus.
The two eight-story structures, completed in 1983 and 1984, have a weighted vacancy rate of 2.7 percent, per Yardi Matrix data. Major tenants include Allstate, Allied Universal, The Hanover Insurance, Collabera and iostudio. The properties have a 16 percent load factor, high ceilings and 22,500-square-foot floor plates.
The two buildings last changed hands in February 2017, when Goldman Sachs Asset Management sold the portfolio to Smith/Hallemann Partners for $48.3 million, according to Yardi Matrix. Goldman Sachs had renovated the assets in 2014.
In September 2018, Innovatus acquired a five-building, 343,331-square-foot office campus in Orlando, Fla. That asset, same as Highland Ridge, was close to full occupancy at the time of sale.
Images courtesy of Yardi Matrix