Nashville Commercial Real Estate Wrap-Up – August 2020

The Joseph Nashville. Image courtesy of The Pizzuti Cos.

While the month began with a high number of new COVID-19 cases in Tennessee, the caseload followed a downward trajectory through the rest of August. As a result, local authorities in Nashville moved to ease some restrictions from its modified second phase of reopening. The metro’s commercial real estate sectors kept relatively active as companies continued to buy or lease space, particularly in industrial assets. Developments also moved forward, with some new projects in Nashville’s construction pipeline targeting the city’s key tech and hospitality industries. Catch up on our August selection of Nashville must-knows:

1. DEVELOPMENT – Facebook kicks off construction on $800 million data center.

The company broke ground on its 13th facility in Gallatin. Designed to meet LEED Gold standards, the property will utilize 80 percent less water than the industry average and will run entirely on renewable energy. The social media giant signed power purchase agreements for 220 megawatts of new solar energy in Tennessee, with plans to contract for more. Facebook acquired several land parcels for $20 million and consolidated them into the 809-acre project site.

2. DEAL – JV sells fully leased Wilson County warehouse.

Westmount Realty Capital purchased a 709,652-square-foot Class A industrial property for $30.9 million. A partnership between Fortress Investment Group and Sansone Group sold the building. The asset last traded for $23.6 million in 2019, when the seller acquired it from Wells Fargo, according to Yardi Matrix. The distribution center occupies 44 acres at 245 Couchville Industrial Blvd. in Mt. Juliet. The building is home to Electrolux North America and Superior Third Party Logistics.

3. LEASING – Duke Realty brings industrial property to full occupancy.

Tech company Optoro Inc. signed a 207,518-square-foot lease at Park 840 West 14840, a 653,460-square-foot warehouse in Lebanon. JLL Executive Vice President Bo Fulk assisted the tenant, while Cushman & Wakefield Director Lonnie Russel represented the owner. Built in 2006, the building is located on 33 acres at 14840 Central Pike, a short distance from Interstate 840 and 25 miles east of downtown Nashville.

4. DEVELOPMENT – Marriott-branded hotel debuts downtown.

The Pizzuti Cos. opened The Joseph Nashville, a 297-key hotel which is part of Marriott’s Luxury Collection. The building rises 21 stories at 401 Korean Veterans Blvd. in SoBro, close to the Music City Center. The developer acquired the 1-acre site for $7.3 million from the Nashville Symphony in 2018. Centennial Bank originated a five-year, $83.5 million construction loan for the project, public records show.