Nashville Commercial Real Estate Wrap-Up – September 2020

Airport Logistics Park. Image courtesy of Cushman & Wakefield

Although the number of new COVID-19 cases in September kept pace with August, Tennessee authorities started allowing more businesses to reopen. In late September, the governor lifted restrictions on gathering sizes in most counties and said that safety measures, such as mask requirements and the isolation of symptomatic cases, would continue through October. Nashville’s commercial real estate remained somewhat active, with deals closing in a variety of asset classes. Developments also moved forward, particularly in the office and hospitality sectors. Catch up on our September selection of Nashville must-knows:

1. DEAL – Hines sells open-air shopping center for $141.3 million.

The Avenue Murfreesboro is an 843,248-square-foot property located on 96.3 acres at 2615 Medical Center Parkway in Murfreesboro. Equity Street Capital partnered with Big V Property Group to acquire the asset. The center last changed hands in the summer of 2013, when Hines bought the property for $163 million from Cousins Properties and Faison Enterprises. The Avenue has six multi-tenant structures, eight outparcels and five parcels for future development. The asset’s largest tenants include Belk, World Market, Barnes & Noble and Old Navy.

2. DEAL – Stoltz Real Estate acquires office asset for $34 million.

Loews Corp. completed the disposition of Loews Vanderbilt Office Plaza, a 168,531-square-foot property. Located on 4 acres at 2100 West End Ave., the property was completed in 1984 and renovated in 2016. The 12-story building is attached to the 339-key Loews Vanderbilt Hotel and has a retail component and three passenger elevators along with structured parking. Both components last changed hands in 1989, when Travelers Insurance sold it for $28.7 million.

3. DEAL – Holladay Properties sells six-building industrial portfolio for $62.3 million.

Starwood Capital Group acquired the first two phases of Airport Logistics Park. The company funded the 397,981-square-foot purchase with a $35 million loan from MetLife. The seller, which also developed the industrial complex, is working on the property’s third phase, which will add five buildings encompassing 328,500 square feet to the park. The first of the facilities is scheduled for completion in 2021. Located near Nashville International Airport at 1922 Old Murfreesboro Pike, the existing buildings delivered in 2019.

4. M&A – Colliers strengthens Nashville presence.

The company acquired Colliers International Nashville LLC, a former affiliate in the metro. The value of the deal wasn’t disclosed, though Colliers Nashville shareholders will benefit from Colliers’ partnership model, which will allow them to maintain equity. With a team of 70 seasoned professionals and a leasing and management portfolio of more than 7 million square feet, the former affiliate is one of the largest commercial real estate firms in central Tennessee.

5. FINANCING – Panattoni Development takes $23 million Music Row project loan.

According to Yardi Matrix, Pinnacle Financial Partners provided the financing. The 108,522-square-foot office development is set to include bike locker, locker rooms and a parking ratio of 3 spaces per 1,000 square feet. Located within an Opportunity Zone at 1030 16th Ave. S., the site is within 2 miles of downtown Nashville. Completion is scheduled for early 2022.

6. DEVELOPMENT – Fairfield Inn & Suites opens near Centennial Park.

The $35 million, 155-key hotel is owned by a partnership of Kana Hotel Group, a private hotelier and two local real estate brokers. According to Nashville Business Journal, the group started the development in 2015. Common-area amenities include a swimming pool, laundry facility and fitness center. Located at 109 29th Ave. N., the property is within 2 miles of downtown Nashville.