WPT Industrial Picks Up Nashville Asset

The REIT paid $33 million for the 505,000-square-foot Class A warehouse which changed ownership via a double escrow.
1740 J.P. Hennessy Drive

A private investor has sold a 505,000-square-foot distribution center near Nashville, Tenn., to WPT Industrial REIT for $33 million, according to public records. The deal was part of a double escrow facilitated by Sinomax USA, the building’s sole tenant. The mattress and pillow manufacturer acquired the asset for $20.8 million immediately before transferring ownership to WPT.

Located at 1740 J.P. Hennessy Drive in La Vergne, Tenn., the Class A property is less than 20 miles southeast of downtown Nashville, between Interstate 24 and the Murfreesboro Pike. The asset is in a heavily industrial area: nearly 16 million square feet of warehouses and manufacturing facilities are within a 2-mile radius.

The industrial property, constructed in 1991, initially served as a warehouse for Whirlpool. Sinomax moved into the asset in mid-2016, according to Nashville Business Journal. The building features a fenced yard, 39 dock-high loading doors, a drive-in door and parking for approximately 50 trailers.

While better known for its booming hospitality market, Nashville is a significant manufacturing and distribution hub. Nearly 7 million square feet of industrial space was sold in the metro for more than $273 million in the past 12 months, Yardi Matrix data shows. In March, a 710,000-square-foot facility changed hands for $23.6 million.