A fund shop is marketing The Pinnacle at Symphony Place with the tower’s sale, if completed, expected to top the area’s pricing record.
The 525,000-square-foot skyscraper is expected to attract bids of about $150 million, or $286 per square foot, according to Hoboken, N.J.-based Real Estate Alert, a subscription trade publication. At that valuation, the buyer’s initial annual yield would be roughly 6.5 percent.
The offering is being pitched to core investors that have been priced out of the nation’s top markets, Real Estate Alert reports. Pinnacle owner Canyon-Johnson Urban Funds, a joint venture between Canyon Capital Realty of Beverly Hills and former basketball star Earvin “Magic” Johnson, has enlisted Eastdil Secured to handle the listing.
A sale should set pricing records both on a per-foot and absolute basis. The highest price ever achieved by an office property in the Nashville area came in September 2012, when Houston-based Lionstone Group acquired the 490,000-square-foot Carothers Building in Franklin for $96.1 million, or $196 per square foot. Cushman & Wakefield, which manages The Pinnacle at Symphony Place, advised the seller, J.P. Morgan Asset Management, in that deal.
The highest valuation on a per-foot basis was recorded in 2011, when an unidentified buyer paid $232 per square foot, or $35.7 million, for the 154,000-square-foot One Greenway Centre in Franklin.
The 29-story Pinnacle at Symphony Place, which is about 85 percent leased, was completed in 2010. Its tenant roster features multiple law firms led by Bass Berry & Sims and the headquarters of Pinnacle Financial Partners. Its asking rents of $32.25 per foot are the highest in Nashville.
Rehab hospital operator Centerre Healthcare is moving its headquarters to Williamson County. The company will take 10,000 square feet of Class A space in Dover Centre on Seaboard Lane in Franklin. The company was on Virginia Way in Maryland Farms.
Rob Lowe, Whit McCrary and Robby Davis of Cassidy Turley represented the landlord. Centerre was represented by Doug Ryan and Janet Sterchi of CB Richard Ellis.
“Our company has experienced significant growth in 2013 and we are anticipating additional growth in 2014 which resulted in our company’s expansion and move to Franklin,” said David Canniff, Centerre's CFO.