Nashville Office High-Rise Commands $105M

Nashville City Center

CapRidge Partners has acquired Nashville City Center, a 477,261-square-foot Class A office tower in central Nashville, Tenn., for $105.3 million from The Shidler Group, according to public records. CIT Real Estate Finance provided the buyer with a four-year, $80.4 million floating-rate acquisition mortgage, secured by HFF.

The seller had purchased the asset in November 2013 for $103 million from Parmenter Realty Partners, according to Yardi Matrix data. Shidler retained ownership of the land through a 99-year ground lease.

Located at 511 Union St. in the heart of Nashville’s central business district, the 26-story high-rise is positioned a block south of Tennessee State Capitol and adjacent to Philips Plaza, which changed hands for more than $110 million in early March. The tower is situated alongside a busy retail corridor with a wide range of dining options, and public transportation connects the asset with the wider metro area.

Constructed in 1988, the tower is home to a mix of tenants including Waller, First Tennessee Bank and Warner Music. In addition to its office component, the property contains approximately 15,000 square feet of retail, from an outdoor food stand to a café on the 15th floor. Building amenities include a fitness center, a music studio and an underground parking garage. Per Yardi Matrix data, the asset has a vacancy rate of 19.8 percent.

CBRE’s Will Yowell, Jay O’Meara, Morgan Hillenmeyer and Douglass Johnson acted on behalf of the seller in the transaction.

Image via Google Maps