Report: Class A office space demand strong, could spur construction

Demand for Class A office space in the Nashville market remained strong through the third quarter, with only 25,000 square feet available within two Class A buildings opened during the past 12 months, according to a report from the Nashville office of Colliers International.

With direct vacancy down to 4.2 percent at the close of the third quarter, Nashville’s office market needs construction to keep pace with the leasing momentum for office space, according to the report.

Relatedly, year-to-date net absorption is positive 1.3 million square feet, equating to 106 percent of 2014's total absorption. Nashville is expected to close out 2015 with the highest occupancy gain since 2008.

The report notes that according to Colliers Global Research, Nashville’s direct vacancy rate of 5.8 percent during the year’s second quarter was lower than that of Toronto (6.1 percent), San Francisco (6.3 percent), Montreal (6.6 percent) and San Jose (7.2 percent).

Of note, and for the Nashville market, Class A office space average $24.68 per foot for the quarter. For downtown Class A space, the figure was $26.42, and $36-$38 for downtown Class A new construction. In contrast, for the Nashville market, suburban Class A office space averaged $24.31 per foot for the quarter and $28-$34 for suburban Class A new construction.

Read the full report here.

Oct 7, 2015 12:00 PM

Investor group eyeing LifeWay campus lands NBA team owner

San Diego-based Southwest Value Partners will align with the investors who are under contract to acquire downtown’s LifeWay Christian Resources campus, Nashville Business Journal reports.

Robert Sarver, who is the majority owner and managing partner of the Phoenix Suns National Basketball Association franchise, founded Southwest Value Partners in 1990. Forbes in January valued the NBA entity at $910 million.

Sarver (pictured) also is chairman and CEO of Western Alliance Bancorp, which has $13.5 billion in assets.

Los Angeles-based C. Frederick Wehba Jr. is leading the investor group (Uptown Nashville LLC) that has the 15-acre site on the Central Business District's western fringe (see here courtesy of Google Maps) under contract. According to sources, Wehba recently was given an extension on acquiring the property, a move seemingly to accommodate his efforts to land a major equity partner.

Nashville-based Tresa Halbrooks, the investor group’s spokeswoman, confirmed to NBJ the Southwest Value Partners involvement but declined further comment.

If the sale materializes, LifeWay will purchase from Metro a SoBro parcel located at the southeast corner of the intersection of First Avenue and Korean Veterans Boulevard and on which the company will have an office tower of up to 17 stories constructed.

Read more here.

Oct 7, 2015 10:02 AM

MDHA committee OKs design elements for The Fairlane, SoBro JW Marriott

Big downtown hospitality projects move forward
Oct 6, 2015 12:44 PM

Real estate notes: North Gulch site lands erosion barriers for project

Capitol View in North Gulch site sees activity

Erosion barriers are in place at the Capitol View site on which Northwestern and Boyle Nashville are eying a mixed-use project.

The team is targeting a year's end construction start on a $90 million, six-story building (pictured) to be located at the northeast corner of the intersection of 11th Avenue North and Charlotte Avenue in the North Gulch.

Project officials could not be reached for comment.

Demo underway at Midtown site planned for tower

Full-scale demolition is underway on the Midtown site for which Lennar is targeting a mixed-used 19-story tower to be called M Residences.

Read more about the project here.

Goodyear building razing looms; hotel projects might follow

The SoBro building last home to Goodyear is having remediation work done as Fillmore Capital Group preps to raze the structure to make way for a planned Cambria Suites hotel project.

Read more here.

Core targets start for Five Points-area project

Nashville-based Core Development is targeting a January start on a residential project slated for a site located near Five Points in East Nashville, Nashville Business Journal reports.

The Nashville-based developer is eyeing 17 townhomes and six flats for the site, which it acquired from LIV Development and is located on West Eastland Avenue about one block west of Gallatin Road.

Read more here.

Waters to step down at Turnberry

Veteran hotel industry executive Ray Waters has resigned from Turnberry Associates, the Aventura, Florida-based developer eyeing a 35-story JW Marriott for SoBro, Nashville Business Journal reports.

Waters, who most recently served as president of Turnberry’s hospitality division and is recognized locally for his work with Hilton Nashville Downtown, told NBJ he is weighing various options.  

Read more here.

Beaman sells Antioch land for $5.5M

Century Farms LLC, a partnership affiliated with Nashville-based Oldacre McDonald, has acquired about 132 acres of Antioch land for $5.54 million, The Tennessean reports.

Nashville automotive dealer Lee A. Beaman was the seller.

Century Farms is eyeing a massive mixed-use project on the site.

Oct 6, 2015 11:31 AM

Report: Q3 ends with record amount of office construction

Approximately 2 million square feet of office building space was under construction within the Nashville market by the end of the third quarter, a record high, according to a quarterly report compiled by the Nashville office of CBRE.

Specifically, Nashville’s office building space inventory grew by 368,000 square feet during the quarter with the addition of 1 Dell Parkway.

Three office developments were added to the under-construction total: Hill Center Brentwood (Phase I and II) and Mallory Park (Phase I), each located in the Cool Springs/Brentwood submarket.

Along with a high level of construction activity, at least four million square feet of Class A office space is currently in the pipeline , primarily located in the West End, Downtown and Cool Springs/Brentwood submarkets, according to the report.

Read the report here.

Oct 6, 2015 11:00 AM

Gulch Crossing lands LEED Gold certification

Gulch Crossing, the recently opened MarketStreet Enterprises-developed Class A office building located in The Gulch, has been awarded LEED Gold certification by the U.S. Green Building Council.

Gulch Crossing received LEED Gold related to its sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality, according to a release. 

“From the beginning, we wanted Gulch Crossing to set a new standard of office buildings in Nashville through design, features and function that was still environmentally responsible,” Jay Turner, managing director of MarketStreet Enterprises, said in the release. “We’re proud to deliver a building that will help attract working talent to Nashville, creating a lasting impact on the city’s professional growth, not its environmental footprint.”

Gulch Crossing highlights include the following: an 18 percent energy usage reduction over conventionally designed buildings; 41 percent water use reduction (resulting in over 650,000 gallons of annual water savings); 72 percent reduction in landscaping water usage through water efficient landscape design; 81 percent (1,854 tons) of construction waste was recycled; preferred parking is provided for low emitting vehicles and fuel efficient vehicles; and reduction of the area’s heat island effect is achieved as 90 percent of the parking is under cover and 75 percent of the building’s roof is highly reflective.

From the release:

MarketSteet worked with local firm, SSR Sustainability Consulting, to help manage the LEED certification process. “We were fortunate to work with MarketStreet, an owner committed to developing a building with a strong community presence while maintaining a low impact on the environment,” said Eric Sheffer, principal at SSRCx. “Gulch Crossing does just that, easily integrating itself into the surrounding sustainable community while standing apart with its unique design and features.”

Extensive consideration was taken in the architecture and design of the building to ensure that the modern elements were environmentally efficient. For example, the building’s exterior is highlighted by cedar accents designed to pay homage to area’s past as a railroad yard. The Forest Stewardship Council certified 96 percent of the cedar used, helping the building to receive high marks for a difficult credit. Additionally, MarketStreet worked closely with the architects at ESa to ensure that the modern architecture, including the use of floor to ceiling glass windows, did not compromise the energy efficiency of the building. Eric Klotz, AIA, who served as ESa’s Senior Design Manager of Gulch Crossing, says, “Core responsibilities of architects today include designing sustainable buildings and spaces that promote health and wellness. Gulch Crossing is the product of a team commitment of the owner and designers to providing a built environment that responsibly utilizes natural resources, products and energy.”
Oct 6, 2015 10:25 AM

Hotels eyed for proposed Green Hills project

Mixed-use development could include Hilton, Residence Inn, office space
Oct 5, 2015 2:52 PM

Downtown building slated for boutique hotel could be capped with neon sign

Nashville-based BNA Associates will go before the Metro Development and Design Review Committee Tuesday to seek approval for exterior updates — including what could be an eye-catching neon rooftop sign — for a proposed boutique hotel to be called The Fairlane and located in an existing building with an address of 401 Union St.

Bathed in travertine limestone, the modernist building to be reinvented is located at the southwest corner of the intersection of Fourth Avenue North and Union Street within the central business district (see the structure here courtesy of Google Maps).

Philip Welker, BNA co-managing partner, said the development team will soon begin undertaking cleaning and demolition work within the 12-story structure’s interior. Crain Construction is handling the work, with a permit valued at $300,000, according to a Metro Codes Department document.

Welker said Nashville-based Manuel Zeitlin Architects is handling the architecture, with Reunion Goods & Services, a New York City-based company, to oversee interior design efforts. Civil Site Design Group is the civil engineer, with EMC Structural Engineers (structural), MP&E Engineering (mechanical, plumbing and fire) and Kidwell Engineer (electrical) also contributing.

As to the exterior, the most noticeable proposed change involves a large neon sign that would, if approved, cap the 1972-opened building. Nashville-based Sideshow Sign Co. has designed the sign.

Relatedly, Welker said the team will replace all the building’s glass to yield a more environmentally efficient structure. In addition, the design calls for the moving of the building’s main entrance from the corner to the middle of the building fronting Union. That entrance is to offer valet parking and a canopy. A secondary entrance fronting Fourth Avenue would remain.

“We feel comfortable about the proposed exterior updates and we are hopeful the MDHA committee will, too,” Welker said.

The team is not yet ready to disclose a construction timetable, opening date or brand, but Welker said the hotel will contain 72 upscale rooms, a penthouse and a “signature restaurant” on the fourth floor.

The property falls within MDHA’s Capitol Mall Redevelopment District and, as such, the exterior changes to the building require committee approval.


(Image courtesy of BNA)





Oct 5, 2015 1:23 PM

Ground breaks this week on Midtown parking garage

Healthcare Realty Trust has released an image for and will break ground this week on its 907-space parking garage to accommodate Midtown Medical Plaza I and II in Midtown.

In addition, the Nashville-based medical office real estate investment trust has released an image of the 10-story garage, to be located in the 2000 block of Hayes Street. Nashville-based Gresham Smith and Partners is handling design.

Carla Baca, HRT director of corporate communications, said GS&P has designed the garage to include a covered pedestrian bridge that will connect to the third floor of the medical plazas and, ultimately, to Saint Thomas Midtown Hospital. If standing today, the garage likely would be one of the largest such facilities in Midtown.

An August 2016 completion is targeted.

Relatedly, Healthcare Realty Trust is undertaking an expansion, renovation and new construction on the aforementioned Midtown Medical Plaza I and II (which act as one building). The new construction will yield a building to sit at the southeast corner of the intersection of Church Street and 21st Avenue North a half block north of the parking garage. The site previously was home to a structure that housed, among others, Saint Thomas Midtown Hospital’s fitness center.

The two Midtown projects will carry a price tag of a collective approximately $50 million.

Read more here.

(Image courtesy of HRT and GS&P)

Oct 5, 2015 12:17 PM

Permit Patrol: 5 October 2015

Aertson's retail space, Google gets going, Bellevue Mall coming down, and more...
Oct 5, 2015 6:50 AM