Foundry Commercial Enters Nashville’s Development Market

Creekside Logistics groundbreaking. Image courtesy of Foundry Commercial

Foundry Commercial has broken ground on Creekside Logistics, an approximately 370,900-square-foot light industrial campus in Smyrna, Tenn. The speculative project, which Foundry is developing in partnership with Principal Real Estate, marks the company’s first foray into development in metropolitan Nashville and will cost approximately $70 million to bring to fruition.

“One of the most attractive things about investing in Nashville is the combination of population growth combined with the diverse economy,” Jason Holwerda, partner & Nashville market leader for Foundry Commercial, told Commercial Property Executive. “In a project like Creekside Logistics, we see demand coming from several different sectors that we believe will hold up in a more challenging economic environment.”

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Located near Interstate 14, Creekside will take shape roughly 25 miles southeast of downtown Nashville. The project will carry the address of 8110-8130 Tridon Drive, sprouting up on a 43-acre site that Foundry acquired in August 2022 for $13 million. “We could not have gotten to the point where we are today without the help of the land seller and the first tenant in the project, Ideal Tridon,” Holwerda said.

Securing a site for industrial development in metropolitan Nashville was no simple feat. “Finding land in middle Tennessee is just difficult mainly due to the topographic challenges in the region,” he added. “There are many areas that are too cost-prohibitive to develop because of the amount of sitework that would potentially be required.”

Upon completion, the three-structure logistics park will consist of the 88,400-square-foot Building 1, the 147,300-square-foot Building 2 and Building 3, which will encompass 135,200 square feet. All three facilities will feature tilt-wall construction and ample car parking space. Additionally, Creekside is designed to accommodate trailer parking and tenants of various size needs, with spaces as small as approximately 17,900 square feet.

Foundry and Principal are relying on Synovus Bank for financing for Creekside and the team has tapped Layton to serve as general contractor for the project. Delivery is expected in the third quarter of 2023.

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“We continue to be excited about the demand in the Greater Nashville region and are optimistic about the future growth in Nashville,” Holwerda concluded. “Despite some of the recent headwinds in the economy at large, we believe in the long-term location of this project and the continued need for high quality, Class A projects on the I-24 corridor.”

Needy in Nashville

It appears Foundry’s first development endeavor in the Nashville market is a timely undertaking. Developers have been highly active in Nashville’s industrial sector over the last few years, eager to keep up with growing demand. However, certain conditions have precipitated a change of late.

“Excavators were quiet in Q3 2022 with only one building breaking ground in the Nashville industrial market,” according to a report by JLL, “Rising interest rates and economic uncertainty have led many developers to pause groundbreaking plans until 2023. Some construction projects scheduled to deliver in Q4 2022 may also be delayed due to supply chain issues for materials and labor shortages.”

In the midst of a precarious economic environment, Foundry is managing to keep its pipeline of projects flowing. Including Creekside, the company currently has 10 active developments valued at more than $1 billion in progress via its Development & Investments platform. Most recently, Foundry broke ground on a 427,000-square-foot industrial development in Coral Springs, Fla.