Magnolia Capital JV Buys Nashville Office Portfolio
- Jun 13, 2019
Albany Road Real Estate Partners has sold a 126,544-square-foot Class B office portfolio near Nashville, Tenn., to a joint venture between Magnolia Capital Investments and TRP Investments for $32 million, according to Yardi Matrix. The deal included the 43,696-square-foot Maryland Park Center and the 82,848-square-foot Gateway Plaza I building in the Maryland Farms Office Park.
Principal Real Estate Investors provided the buyers with a $40 million loan, per public records. The mortgage also encumbers another of the owner’s assets, the 105,008-square-foot Horizon Centre in Brentwood, Tenn. The financing pays down $15 million in acquisition financing from CapStar Bank, taken when the structure changed hands in early 2017 for $20.9 million, per Yardi Matrix.
Gateway Plaza I, located at 5409 Maryland Way in Brentwood, is a stone’s throw from the second building at 115 E. Park Drive. The seller renovated both properties in 2016, and the assets are leased to a mix of tenants including Maxim, Henderson Financial and Layton Construction.
The owner selected Avison Young to oversee both property management and leasing for both buildings, with Lisa Maki and Mike Jacobs marketing the assets to potential tenants.
Despite a concentration of investment volume in Nashville’s more central areas, the Brentwood submarket saw few major office deals close last year. Additionally, as the metro gains record numbers of new residents, the largest multifamily transaction of the year occurred in nearby Franklin.