Raleigh, NC-based Highwoods Properties has announced the acquisition of Nashville’s premier commercial high-rise, The Pinnacle at Symphony Place, a 29-story Class AA office tower located in Nashville’s booming CBD. The 417-foot-high trophy office asset, located at 150 Third Avenue South sits in the SoBro district, a dynamic business, entertainment and retail hub. The 520,000-square-foot building was acquired for $152 million with Highwoods committing to $0.8 million building improvements expected to take place in the near future. Highwoods also received a $1.3 million closing credit for free rent from the seller, not included in the purchase price.
Boasting an 84.9 percent occupancy rate, Pinnacle is expected to generate a 2014 full year cash operating income of $8.8 million, while GAAP NOI will hit $10.7 million. The average remaining lease term in the high-rise is 11 years and the five-year rollover is less than 2 percent. The tenant roster includes prestigious law firms such as Bass, Berry & Sims, Butler|Snow as well as a multitude of other companies like financial services firm Pinnacle Financial Partners. The Pinnacle sits on a ground lease with 93 years remaining on the term. Cash rent for 2014 will be $0.6 million.
Officially opened in 2010, The Pinnacle at Symphony Place features 520,000 square feet of office space located above level six, 15,000 square feet of street level retail space, four-and-half levels of underground parking combined with six levels of above grade parking. Amenities at the trophy tower include a fitness and yoga center, popular The Southern Steak and Oyster Restaurant, floral and gift shop, café and sundries shop, on-site shoeshine, concierge services, 24/7 manned security, video monitoring and card-controlled access. The Pinnacle also has direct access to the Shelby Street Pedestrian Bridge, which connects over 20 miles of greenways around Cumberland River. The high-rise was designed by internationally reputed architectural firm Pickard Chilton and local award-wining firm EOA Architects. It was developed by Barry Real Estate Companies at a cost of $170 million. It is one of only a handful of office towers in the Southeast with no interior columns, which increased useable space by up to 20 percent.
It is also the first office tower in Nashville to be LEED Gold certified. Green features include the one-acre green roof terrace garden, unique in Nashville and designed by Hawkins Partners which features WiFi, various seating areas, a custom tent capable of holding 300, covered bike parking, preferential parking for carpoolers and low-emission vehicles, 30 percent more efficient water fixtures, state-of-the-art energy management, low-emitting paints, adhesives, a green cleaning program and building-wide recycling program, easy access to public transportation, and a walkscore of 97. A number of construction materials were locally sourced and had recycled content, while 90 percent of construction waste was recycled. The Pinnacle is an urban infill project.
Image courtesy of The Pinnacle at Symphony Place