Velocis, Lincoln Property Sell Nashville Office Asset for $75M

CBRE brokered the sale of The Baker Donelson Center. Image courtesy of CommercialEdge

PNH Properties has acquired 211 Commerce, an office building spanning 233,314 square feet in Nashville, Tenn., for $75 million. The seller was a joint venture between Velocis and Lincoln Property Co. CBRE brokered the deal on behalf of the buyer.

The asset previously traded in 2021 in a $50.3 million deal that involved a $51.9 million acquisition loan from Prime Finance Partners, according to CommercialEdge data.

Built in 2000, the property also known as The Baker Donelson Center rises 11 stories featuring 21,461-square-foot floorplates and ground-floor retail space. The previous ownership recently implemented $16 million in capital upgrades to the building, adding a new conference center and business center, along with renovating the lobby, tenant lounge, elevators and facade. Tenants include FirstBank, Nashville Health Care Council and IRiS Networks, the same source shows.

Located at 211 Commerce St., the building is within downtown Nashville, across the street from the AT&T Building. The property is also within walking distance of the Riverfront transit stop and of the Tennessee State Capitol.

CBRE Senior Vice Presidents J. Roscoe High and Morgan Hillenmeyer represented PNH Properties in the off-market transaction.

Nashville outperforms national average

Year-to-date as of October, Nashville registered a total investment volume of $161 million, at a price of $248 per square foot—well above the national average of $196, a recent CommercialEdge report shows. The metro ranked third across southern markets in terms of average sales price, lagging Austin ($413 per square foot) and Miami ($365 per square foot).

The metro’s office market has been performing well, with vacancy rates dropping 2.6 percent year-over-year and reaching 16.1 percent in October. Nashville’s vacancy was below the national figure of 17.8 percent, according to the same source.