Nashville Commercial Real Estate Wrap-Up – October 2020
- Nov 05, 2020
Nashville’s commercial real estate sector experienced several landmark moves in October, with construction and transaction activity taking center stage. Industrial assets attracted the most capital, but one notable deal also closed in the office sector. Although the city’s hospitality and entertainment industry continues to struggle, some developments remained on track, while others were on the fence. Even as a major hotel delivered at Nashville Yards, AEG’s neighboring mixed-use project hit the brakes. Read our October selection of Nashville must-knows:
1. DEVELOPMENT – General Motors to invest $2 billion in Spring Hill plant.
The company announced the capital improvements at the property in preparation for the production of electric vehicles. The car manufacturer will expand the facility’s paint and body shops and invest in new machinery, conveyor belts, controls and tools. The plant will be the company’s third location to manufacture electric vehicles. In addition to its shift toward assembling fully electric cars, traditional vehicles will continue production on-site.
2. DEAL – Northwood Investors pays $200 million for Franklin Park.
JPMorgan Asset Management sold the two office buildings totaling 550,881 square feet in Cool Springs, according to Nashville Business Journal. The two assets previously changed hands in 2018, when Hall Emery sold them for $38.5 million, Yardi Matrix data shows. The entire site is 71 acres and there is room for future development. Located at 6100 and 6700 Tower Circle, the 10-story buildings came online in 2014 and 2017.
3. DEVELOPMENT – Nashville Yards Hyatt opens doors.
Developer Southwest Value Partners and general contractors Clark Construction Group and Bell & Associates Construction debuted the 591-key Grand Hyatt Nashville hotel at 1000 Broadway. The companies broke ground on the project in January 2018. The 25-story building has 77,000 square feet of event space, including a 20,000-square-foot ballroom. Amenities include a rooftop lounge and a wellness center on the fifth floor, which features a gym, swimming pool and spa.
4. DEAL – Stockbridge Capital Group acquires 564,404-square-foot warehouse.
The company purchased Airport Business Park’s Building 3 in Smyrna from Hillwood. The buyer financed the purchase through a $450.2 million portfolio loan from Prudential Financial. The senior note also encumbers 16 other industrial properties totaling 9.3 million square feet nationwide, according to Yardi Matrix data. Located on 41 acres at 423 Liberator Lane, the single-story facility was completed in 2018 and has two grade-level and 23 dock-high doors.
5. DEVELOPMENT – Hilton-branded hotel coming to Nashville International Airport.
Chartwell Hospitality is on track to build a 14-story property adjacent to the airport’s future central terminal. The estimated cost for the 292-key hotel is $95 million, and the Metropolitan Nashville Airport Authority will invest an additional $82 million to develop an adjacent parking garage and plaza. Amenities will include a fitness center, open-air swimming pool and bar on the rooftop along with 16,500 square feet of event space.
6. DEAL – TPG buys northeast Nashville industrial facility.
The company purchased the asset through its logistics platform, Dogwood Industrial Properties. N&N Moving Supplies sold the two warehouses encompassing 133,186 square feet in Old Hickory. The buildings previously traded in April 2019, when Dealers Warehouse sold it for $4.1 million. Developed in several phases between 1982 and 1998, the structures are on an 8-acre site at 931 Robinson Road.