Nashville Commercial Real Estate Wrap-Up – March 2020

Downtown project lands nearly $280 million loan. Office portfolio sells for $80 million. Here's our March list of Nashville must-reads.
Hyatt House Nashville/Downtown – SoBro. Image courtesy of Hyatt Hotels Corp.

Music City buzzed with activity across several asset types in March. Although the hospitality industry faces steep challenges due to the COVID-19 pandemic, two major deals closed in the metro involved hotels, potentially helped along by the Federal Reserve’s two rate cuts this month. Companies also invested to expand their office and industrial reach within the region. Catch up on our March selection of Nashville must-knows:

1. DEAL – Southeast Nashville industrial asset changes hands.

A private investor sold the 216,993-square-foot facility for $15.7 million, public records show. TPG Real Estate acquired the property, according to Nashville Post. Located on 11 acres at 3287 Franklin Limestone Road, the single-story building opened its doors in 1995 and is 5 miles from Nashville International Airport. Tenants include Outdoor Recreation Co. of America and Nashville Packaging.

2. DEAL – Hyatt property trades for $57.8 million.

Noble Investment Group purchased the 217-key Hyatt House Nashville/Downtown-SoBro from Mountain Shore Properties, according to public records. Truist Bank provided $52.1 million in acquisition financing. Located at 535 Fifth Ave. S., the six-story building delivered in February, more than two years after construction began at the end of 2017.

3. LOAN – Downtown towers project receives $278.9 million construction loan.

Bank OZK provided the financing for Propst Development’s two projects. The first development will be a 21-story, 510,000-square-foot office building with a 42,000-square-foot retail component, according to Nashville Business Journal. The second, a 34-floor high-rise, will house a Hilton Conrad hotel and 196 upscale apartments. The note represents more than half of the project’s estimated $540 million cost. Propst had purchased the 4-acre site at 1600 West End Ave. from a local developer two years before.

4. DEAL – Nuveen buys 317,000-square-foot Brentwood portfolio.

The company paid $30 million for a 117,000-square-foot office property at 5500 Maryland Way and acquired the two, 100,000-square-foot buildings at 5200 Virginia Way for more than $50 million, according to Nashville Post. Seller Northwestern Mutual had paid a combined total of $46.6 million for the portfolio in 2010.

5. PEOPLE – Cushman & Wakefield names Nashville director.

The firm appointed Lonnie Russel as director of its industrial agency leasing group. With more than 35 years of experience in the field, he will be responsible for overseeing Duke Realty’s 3.6 million-square-foot industrial portfolio in the market. Previously, Russell served as vice president of leasing at Duke Realty. He had earlier worked in property management for Centennial and Property Company of America.