A German real estate investment group has paid more than $73 million for a large portion of prominent retail development Nashville West.
GLL Real Estate Partners — as Nashville Exchange LLC — is the new owner of the big-box development, having paid $73.15 million to Nashville West Shopping Center LLC, the joint venture between Newton Oldacre McDonald and Parkes Development, in what the NOM and Parkes are calling a recapitalization effort.
Regions Bank — which led the consortium of four lenders who loaned the development more than $90 million in 2009 — released its lien against the four largest tracts of the development. The bailout allowed the completion of the project as subcontractors had stopped working at Nashville West when the joint venture fell behind on its payments.
GLL is a Munich-based real estate investment group with U.S. offices in California and Florida. It was founded in 2000 is now a joint venture between management and Italian insurer Generali.
“We are proud to finalize the successful recapitalization of Nashville West,” said Joe Parkes, president of his eponymous Franklin-based company. “This transaction paves the way for us to complete the center and bring more great retailers and restaurants to Nashville’s west side.”
Parkes' partner Mark McDonald said the recapitalization will allow for further construction.
"We have delivered on our vision to develop a high-quality open-air retail center in a great location that creates critical mass and attracts additional activity along the Charlotte Pike corridor — the Hill Center, Chick-fil-A, and other specialty retail in west Nashville are great examples,” McDonald said. “We look forward to announcing our new retailers and restaurants later this year and anticipate that new construction will begin in early 2013."
Commercial Property 1 will continue to manage the 700,000-square-foot center.