authors William Williams
The Connecticut-based entity that paid $264 million for the office component of SoBro-based mixed-use tower 222 2nd Avenue South has now spent about $62 million on an industrial office park located near Nashville International Airport.
The deal by Starwood Real Estate Investment Trust is believed to be the most significant industrial real estate transaction, based on per-foot price, in Davidson County history.
Spanning about 55 acres and comprising Airport Logistics Park phases one and two, the property has a main address of 1222 Old Murfreesboro Pike and offers six industrial buildings with a collective 398,000 square feet. One of the structures (pictured) is home to Advance Electrical and Industrial Supply.
The deal is the equivalent of approximately $157 per square foot based on the combined size of the six buildings. Other tenants include Aramark, DHL, Power Home Remodeling Group, PGW Auto Glass, Safeway and Overhead Door. The buildings are fully leased, according to information on the Starwood REIT website. The firm undertook its first Nashville acquisition, via an affiliated entity, in February when it acquired the bulk of (all but the retail segment) downtown high-rise 222 (read more here). According to its website, the company owns properties (including some high-rise buildings) in no fewer than 10 states.
The seller was Airport Logistics LLC, which is affiliated with South Bend, Indiana-based Holladay Properties. The local office of Holladay announced in April 2016 it had paid $2.08 million for about 130 acres of industrial-zoned land that eventually would become Airport Logistic Park (read here). According to Metro records, Holladay retains three unimproved parcels with a collective approximately 75 acres and on which it has begun work on phase three of Airport Industrial Park. That phase will include five buildings with a combined 328,500 square feet. The first building of that phase will be delivered in the first quarter of 2021, according to a release.
Cushman & Wakefield brokers David McGahren and Ronnie Wenzler (Nashville) and Stewart Calhoun and Casey Masters (Atlanta) represented Holladay in the transaction.