As promised last week, the following are brief racaps of activity this past week:
Nashville saw several properties change hands with the Baker Donelson Center being the most prominent. Cushman Wakefield | Cornerstone brokered the sale to Sun Life of Canada and has assumed the property management and leasing for this Class A, CBD office building. We have refrained from comment despite the numerous press articles. However, this is a significant sale as it demonstrates confidence in Nashville from institutional investors.
This sale was very time consuming for all involved and much can be attributed to the CMBS loan that had to be assumed. Whereas our commercial mortgage division, Q10 Vista, is active providing CMBS capital to its clients, this should remain a second option after exhausing life insurance lending options. The CMBS servicers (and their attorneys) lived up to their poor reputation and became impediments to the transaction.
There have also been reports of a retail sale in Cool Springs at $217 psf, which represents solid pricing, First Image Building sold to a user and Central Parking is being acquired by Standard Parking. Clearly, the loosening of the debt markets is having an impact on property sales, as debt is inexpensive for well capitalized borrowers.
Chattanooga and the I-75 corridor to Knoxville is enduring a lot for “tire kickers”. The Wacker Chemie plant is creating significant jobs, suppliers to VW plant are circling this entire corridor as they bid on supplier status, and others are searching due to a strong labor force. We are just seeing a glimpse of what VW will generate in due time.
I hope the articles and my brief synopsis are helpful.