Nashville Commercial Real Estate Wrap-Up – June 2020

Joint venture acquires 250-key Midtown hotel. Mixed-use project scores $87.4 million in financing. Catch up with our June selection of Nashville must-reads.

Hutton Hotel. Image courtesy of Geolo Capital

While Nashville had begun reopening, local authorities decided to reexamine the process following an uptick in new coronavirus cases, with modified phase two conditions going into effect one day before July 4. The list of restrictions includes a ban on gatherings of more than 25 people. Retail stores, gyms, salons and restaurants are set to operate at limited capacity, while bars and dance floors remain closed. 

Meanwhile, the commercial real estate sector recorded some activity last month, including several notable moves by GBT Realty. Read our June list of Nashville must-knows:

1. DEAL – Joint venture acquires 250-key Midtown hotel.

The partnership includes BentallGreenOak, Flank Management LP and Geolo Capital. The joint venture bought the property in an all-cash transaction. Hutton Hotel came online in 2009 and underwent a full renovation in 2017. Common-area amenities include a fitness center, recording studios, more than 20,000 square feet of event space and a 5,000-square-foot social club. Located at 1808 West End Ave., the hotel is approximately 2 miles from downtown Nashville.

2. FINANCING – GBT Realty, Chartwell Hospitality land $87 million construction loan.

First Horizon Bank provided the financing for Parke West, a mixed-use development located at 3415 Murphy Road. GBT Realty received $56.5 million for the residential and retail components, while Chartwell secured almost $31 million to develop two hotels. The 1.5-acres site is situated within 2 miles of downtown Nashville. GBT acquired the parcel in 2019, for $7.2 million.

3. LEASING – FirstBank inks anchor lease at upcoming trophy tower.

The bank is set to occupy more than 52,000 square feet at ONE22ONE, which is being developed by GBT Realty. The lease also offer FirstBank the option to expand to more than 100,000 square feet. Site work started in February and completion is scheduled for 2022. The 24-story tower located at 1221 Broadway is slated to include 365,000 square feet of office and 15,000 square feet of retail space. GBT has partnered with architecture firm Gresham Smith & Partners and general contractor Brasfield & Gorrie for the project. 

4. DEAL – Brennan Investment Group acquires Gallatin industrial facility. 

The firm also arranged the leaseback of the 90,250-square-foot property to Bennett Tool & Die. Located at 1550 Airport Road, about 1 mile from Music City Executive Airport, the property serves as the company’s headquarters and main manufacturing facility. The asset is 2 miles from downtown Gallatin and 30 miles from downtown Nashville via Interstate 65. According to the company, Brennan’s footprint across Tennessee and Kentucky adds up to 1 million square feet. 

5. PEOPLE – GBT Realty appoints new senior executive.

The company added Eric Spencer as vice president of investments and strategic planning. Most recently, he served as vice president of asset management and head of analytics for Jamestown Properties. Before that, he worked for JLL, ACG Professionals and CWCapital Asset Management. The newly appointed vice president is a graduate of Vanderbilt University.

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