Greenberg Gibbons Enters Tennessee With Nashville Buy

April 22, 2024

Retail Investment Nashville - Knoxville NewsMoreSoutheast

This retail property is trading for the first time in more than two decades.

Cool Springs Pointe came online in 1998. *Image courtesy of Greenberg Gibbons*

In its first Tennessee acquisition, Greenberg Gibbons has purchased Cool Springs Pointe, a 198,103-square-foot retail center in Brentwood, Tenn., for $34.5 million. CommercialEdge data reveals the previous owner was SITE Centers.

The buyer acquired the retail asset through Greenberg Gibbons Real Estate Income Fund, a $100 million private equity fund launched in 2021. The investment vehicle targets shopping centers across the Midwest, Southeast and East Coast markets.

Greenberg Gibbons used this fund to also purchase Gateway Plaza, a 214,789-square-foot retail center in Sanford, Fla., for $23.6 million. Another acquisition was that of Town N’ Country, a 263,490-square-foot property in Greenville, S.C., for $23 million.

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Anchored by Best Buy, Ross Dress for Less, Golf Galaxy and Old Navy, among other retailers, Cool Springs Pointe was fully leased at the time of sale. The asset previously traded in 2000 for $22.5 million, according to CommercialEdge information.

The 1998-completed retail center attracts more than 1.8 million visitors annually. The shopping center occupies more than 19 acres at 1600 Galleria Blvd., off Interstate 65; U.S. Route 31 is 2 miles west, while downtown Nashville, Tenn., is some 15 miles north.

A closer look at Nashville’s retail fundamentals

In the last quarter of 2023, Nashville’s retail market had one of the tightest vacancy rates in the nation, at 3.2 percent, according to a report by Avison Young.

However, the metro’s retail investment volume took a dip last year, falling from the $350 million figure recorded in 2022—translating to $364 per square foot—to nearly $100 million or $274 per square foot in 2023, the same report shows. Even so, the price per square foot remained above the five-year average of $241.

Meanwhile, 1.1 million square feet of retail space came online in Nashville in 2023. One of the delivered properties was a a 290,000-square-foot, open-air shopping center owned by Tanger Outlets.