Thursday, April 18, 2024
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DevelopmentSoutheastStudent HousingTennessee

RISE, University of Tennessee Break Ground on Two Residence Halls Totaling 1,950 Beds

by John Nelson

KNOXVILLE, TENN. — A public-private partnership between the University of Tennessee and RISE: A Real Estate Co. has broken ground on two residence halls expected to open on the university’s Knoxville campus in fall 2025. The two communities will add approximately 1,950 beds to the university’s housing inventory, which currently totals 8,500 beds. The first development, a seven-story building offering 788 beds, will be located at the intersection of Andy Holt Avenue and 20th Street. The second, two-building residence hall will offer 1,166 beds between Caledonia and Terrace avenues. Construction of the two communities represent Phase I of a larger project, which will include the development of a third 1,028-bed residence hall. The project is being delivered through a ground lease structure, with the university retaining ownership of the land. An entity doing business as Provident Group–UTK Properties will own the facilities for the term of the project-based bond financing. At the end of the debt, the ownership of the buildings will revert to the university. RISE — alongside undisclosed partner firms — is developing, financing and constructing the facilities and will maintain them in partnership with the university through a long-term shared services partnership. The development team includes Niles …

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AcquisitionsCompany NewsHospitalitySoutheastTennesseeVirginia

Hilton to Acquire Graduate Hotels for $210M

by John Nelson

MCLEAN, VA. — Hilton plans to acquire Graduate Hotels, a hospitality brand with hotels in college towns such as Ann Arbor, Mich., and Chapel Hill, N.C. The brand was founded in 2014 and has grown to include hotels across the country, as well as in Oxford and Cambridge, United Kingdom. Hilton will pay $210 million to acquire all rights to the Graduate brand worldwide, enter into franchise agreements for all existing and signed pipeline Graduate Hotels, and become responsible for the brand’s future development and growth. Adventurous Journey Capital Partners (AJ Capital) will remain the owner of the more than 35 operating and pipeline Graduate properties, each of which will be operated under long-term Hilton franchise agreements. Hilton expects the deal to close in the second quarter, subject to customary closing conditions.

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AcquisitionsRetailSoutheastTennessee

Marcus & Millichap Brokers $3.6M Sale of Retail Center in Chattanooga

by John Nelson

CHATTANOOGA, TENN. — Marcus & Millichap has brokered the $3.6 million sale of Brainerd Market Center, a 44,800-square-foot retail center located at 480 Greenway Drive in Chattanooga. The property was 80 percent leased at the time of sale to a mix of national, regional and local tenants, with the average tenant tenure being 14 years. Situated two miles from Chattanooga Metropolitan Airport, Brainerd Market Center is shadow-anchored by a Walmart Supercenter and is adjacent to East Gate Town Center. Zach Taylor of Marcus & Millichap’s Atlanta office represented the seller, an undisclosed Tennessee-based developer, in the transaction. Jody McKibben, Marcus & Millichap’s broker of record in Tennessee, assisted in closing the transaction.

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IndustrialMarket ReportsSoutheastSoutheast Market ReportsTennessee

The Race Is on to Meet Industrial Demand in Nashville

by John Nelson

By Jack Armstrong and Joanna Paszek of CBRE The Nashville industrial market remained strong through 2023 despite macroeconomic pressures, fueled by persistent occupier demand and limited availabilities. Occupiers were active in the market with mostly sub-100,000-square-foot requirements, making it vital for owners and developers to consider size segment trends and supply the market based on varying occupier needs. The logistical advantage of Nashville’s geographic location continues to attract occupiers and investors to the market. Three major interstates intersect through the city, and companies can reach 72 percent of the U.S. population within two-day ground delivery. A consistent average of 100 new residents daily and waves of new-to-market companies helped promote a swift post-pandemic economic recovery and illustrate the market’s resilience. An increased presence of electric vehicle (EV) companies is paving the way for significant infrastructure upgrades, bringing high-paying jobs and growing supply-chain demand to support their product distribution. Economic incentives like Tennessee’s FastTrack Program grants for job training and infrastructure development, job tax credits and sales tax exemptions have attracted roughly 2,500 jobs and $2.8 billion of capital investment by EV-related operations to Middle Tennessee since 2020.  Together, Nashville’s pro-business environment and status as a place people want to live …

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DevelopmentIndustrialSoutheastTennessee

Urban Story Ventures to Invest $28M for New Industrial Facility in Chattanooga

by John Nelson

CHATTANOOGA, TENN. — Urban Story Ventures plans to invest $28 million for the development of a new industrial facility located within the Centre South Riverport Industrial Park in Chattanooga. The property will be situated on a 19-acre site along Amnicola Highway and the Tennessee River. The new industrial/flex facility will include at least 185,000 square feet of light to heavy industrial or logistics space, with the potential for 40,000 square feet of mezzanine space. Urban Story Ventures plans for the facility to feature several loading docks, ample parking and gated entry. The design-build team includes general contractor Grace Construction and architect Method Architecture. The construction timeline was not disclosed, though the locally based developer plans to break ground on Thursday, March 21.

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AcquisitionsRetailSoutheastTennessee

Last Mile Investments Acquires 26,114 SF Retail Center in Metro Nashville

by John Nelson

BRENTWOOD, TENN. — Cincinnati-based Last Mile Investments has acquired The Shops at Mallory, a 26,114-square-foot, unanchored retail center located at 1731 Mallory Lane in Brentwood, about 10 miles south of Nashville. Jim Foley of Foley Real Estate represented the undisclosed seller in the transaction. Jordan Powell of Avison Young represented Last Mile Investments, which now has assets in 16 separate MSAs. The sales price was not disclosed. The Shops at Mallory was leased to service and convenience retailers including Massage Envy, Sola Salon Studios and Genesis Diamonds at the time of sale.

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DevelopmentLeasing ActivityMixed-UseMultifamilyRetailSoutheastTennessee

Portman Signs Solidcore to Retail Lease at Starling Residential Tower in Nashville

by John Nelson

NASHVILLE, TENN. — Portman has signed fitness chain [solidcore] to a retail lease at Starling, a 363-unit residential tower underway in Nashville’s Germantown neighborhood. The fitness concept, which focuses on high-intensity, low-impact training in 50-minute group classes, will join a tenant roster that will include Toastique, Social Cantina and Retrograde Coffee. Preleasing efforts at Starling are currently underway, with the first units delivering in May. Portman plans to debut [solidcore] this fall, marking the concept’s second location in Nashville.

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Market ReportsOfficeSoutheastSoutheast Market ReportsTennessee

Nashville’s Office Market Bucks National Trends with Rent Growth, Leasing Velocity

by John Nelson

By Stewart Lyman and Robby Davis of Stream Realty Partners Contrary to popular belief, the office market is not dying, particularly not in Nashville. While the market is facing headwinds from the interest rate environment and general economic uncertainty, Nashville has shown resiliency, bolstered by the city’s strong population growth, low unemployment rates, and a vibrant, diverse job market.  However, while flight-to-quality has been experienced well before the COVID-19 pandemic, the positive performance of top-tier buildings compared to the rest of the market has accelerated coming out of COVID-19. In 2023, Class A Tier I buildings posted 1.17 million square feet of positive absorption compared to negative absorption of 141,900 square feet and negative 32,267 square feet in Class A Tier II and Class B assets, respectively.  Top-tier buildings signed some of Nashville’s largest leases in the past year, such as Creative Artists Agency (CAA) for 75,000 square feet at Nashville Yards, Designed Conveyor Systems for 47,000 square feet at McEwen Northside and JE Dunn for 41,000 square feet at Neuhoff. In the urban core, two of the most high-profile new developments are Neuhoff (Germantown) and Nashville Yards (Downtown), both of which are elevating the tenant experience by delivering best-in-class …

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DevelopmentMultifamilySoutheastTennessee

Southwest Value Partners, StreetLights Residential to Open Two Apartment Towers Totaling 650 Units at Nashville Yards

by John Nelson

NASHVILLE, TENN. — Development partners Southwest Value Partners and StreetLights Residential are currently underway on the construction of two residential towers at Nashville Yards, with plans to open in November. Comprising 34 and 35 stories, respectively, The Everett and The Emory will total 650 units. Amenities at the properties will include a shared third-floor deck featuring a pool, fitness center, game room, resident bar, workspace and a golf simulator. The project team includes architect StreetLights Creative studio and general contractor Clark Construction. Leasing is scheduled to begin this summer. Upon completion, the 19-acre mixed-use Nashville Yards development will also feature a 591-room hotel and 4,500-person concert venue, as well as office and retail space.

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DevelopmentMixed-UseRetailSoutheastTennessee

Urban Story Ventures to Redevelop 160,000 SF Shopping Center in Metro Chattanooga

by John Nelson

EAST RIDGE, TENN. — Urban Story Ventures will redevelop a 160,000-square-foot shopping center located at 3715 Ringgold Road in East Ridge, roughly 10 miles outside Chattanooga. The developer purchased the 13-acre property — which features a 38,000-square-foot space formerly occupied by Food City, five retail outlet buildings and parking — last year. A roster of food-and-beverage, professional services and apparel retailers currently occupy a portion of the center. Plans call for a combination of renovations to existing suites, as well as new construction. Urban Story Ventures will reposition the property as a mixed-use development and plans to sign leases with retail, office and medical office tenants throughout the redevelopment.

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