H.G. Hill Realty & Southeast Venture’s 12South Flats Retail Space Almost Fully Leased

Pre-leasing for residential units begins May 15, 2013

Retail space in 12South Flats, the mixed-use development project by H.G. Hill Realty Company and Southeast Venture in the 12 South neighborhood, is 85 percent leased, well ahead of the property’s late summer construction completion date.

New retailers investing in the area include:

Josephine: An original restaurant concept from current neighborhood proprietor Miranda Whitcomb Pontes that will highlight old school cooking techniques, emphasize proteins and utilize relationships that Pontes has with her current vendors at Burger Up. Josephine will occupy 3,163 square feet in the end cap of the development closest to the 12 South Taproom & Grill.

Emerson Grace: A high-end clothing store that will be unique to Nashville, Emerson Grace is a new concept developed by the owners of Therapy Pasadena, which has multiple locations in Pasadena, Calif. and Portland, Ore. The store will inhabit 2,529 square feet of space in the northern portion of the development.

Jeni’s Splendid Ice Cream: One of Nashvillians favorite spots for a cold treat, Jeni’s Splendid Ice Cream will open its second Nashville location in 1,531 square feet next to Josephine.

Cadeau Gifts: A place to shop for unique gifts, home décor and furnishings, Cadeau Gifts is owned by Frannie Preston Daughrity and Catherine Rector. They currently operate one location in Columbia, Tenn. and will lease 1,083 square feet for their new Nashville location.

“These retailers were attracted to 12South Flats because of its pedestrian friendly nature. Additionally, the growth of the area over the last decade, its unique neighborhood environment and convenient location, all combine to make 12South Flats an ideal new retail space in Nashville,” said Tarek El Gammal, broker for Southeast Venture.

El Gammal and Greg Coleman are the brokers leading 12South Flats’ leasing activities. Nashville residents can expect these new retailers to begin opening their doors in fall of this year.

H.G. Hill Realty Company and Southeast Venture also announced today that pre-leasing for the residential units of 12South Flats will begin May 15. There are 82 one bedroom and eight two bedroom apartments that are available to rent. Interested parties can learn more at www.12southflats.com.

MTSU Purchases MTMC’s Former Campus

Axson West, Principal, Southeast Venture and Gordon Ferguson, President and CEO, MTMC

In April 2013, Middle Tennessee State University (MTSU) announced its purchase, for $11.1 million, of Middle Tennessee Medical Center’s (MTMC) old hospital campus in Murfreesboro, Tenn.

The North Highland Avenue property became available in October 2010, after MTMC moved into its $267 million new hospital on Medical Center Parkway in Murfreesboro’s Gateway area.

In 2009, MTMC hired Southeast Venture and Principal Axson West to market the old campus. The hospital’s leadership engaged Southeast Venture because of its experience in marketing commercial and medical real estate. Additionally, Southeast Venture’s architecture services provided necessary expertise for the adaptive use of the 17.4-acre site.

With guidance from Southeast Venture, MTMC chose to demolish the old hospital building so the property would be more attractive to a wider selection of interested buyers. The Rutherford County campus sits three blocks from MTSU, four blocks from Murfreesboro’s thriving and historic town square and 30 miles southeast of downtown Nashville.

In the early meetings with Southeast Venture, MTMC and MTSU, MTSU expressed that they didn’t have the funds from the Tennessee Board of Regents to purchase the property. Fortunately, the university’s capital campaign exceeded its initial $60M benchmark, and generous donations from alumni like Andrew Woodfin “Woody” Miller made the purchase possible.

On Friday, April 19, 2013, MTSU hosted a ceremony in the Bell Street Building to mark the purchase of the property. Sidney McPhee, president of MTSU, kicked off the event by speaking about the long-standing relationship between MTSU and MTMC.

Sidney McPhee, President, MTSU

Calling MTMC “one of our strongest community partners,” McPhee said that the acquisition of the old hospital campus is “the next step in strengthening this relationship.” MTMC and MTSU are Murfreesboro’s two largest employers and MTSU is Tennessee’s largest undergraduate program with over 23,000 students enrolled.

McPhee also noted that the motivation to enter into the deal with MTMC came out of a continued need to enhance MTSU’s facilities, which he called a “top priority of the university.”

Other speakers at the ceremony included Lee Moss, chairman and CEO of MidSouth Bank and friend of MTSU; Gordon Ferguson, president and CEO of MTMC; and Tommy Bragg, Murfreesboro mayor. Ferguson made special mention of Southeast Venture and West, thanking them for their roles in securing the purchase.

Lee Moss, Chairman and CEO, MidSouth Bank

Gordon Ferguson, President and CEO, MTMC

Tommy Bragg, Murfreesboro Mayor

MTSU plans to use the Bell Street Building at 503 East Bell Street immediately. The school will also make immediate use of a 407-space parking garage and multiple parking lots on the site.

Unveiling of Bell Street Building sign

Axson West, Principal, Southeast Venture and Paul Latture, President, Rutherford County Chamber of Commerce

HealthSpring’s MetroCenter Campus Sells for $36.4M to Los Angeles Investment Company

Southeast Venture partnerships developed and owned property

Los Angeles-based real estate investment company Griffin Capital Corporation has purchased the HealthSpring MetroCenter campus for $36.4 million, Southeast Venture officials announced today.

The two 72,163 and 98,352 square-foot office buildings, at 500 and 530 Great Circle Road in Nashville, were sold by partnerships controlled by Southeast Venture, a local diversified commercial real estate and design services company that designed and developed the property.

This is Griffin Capital’s first purchase in Nashville.

“It is a great time to invest in Nashville, and this campus is an ideal acquisition for our firm,” said Don Pescara, managing director of Griffin Capital. “We really like the combination of an attractive, new, build-to-suit real estate property, located in a dynamic, growing market, coupled with the long term lease to such a creditworthy company—that stability of cash flow is what we and our investors are looking for.”

“We’re very pleased with this investment and hope to find others with similar characteristics,” Pescara added.

The first phase of the HealthSpring campus opened in August 2011. The second phase of construction completed on time in May 2012. The project sits on just over 21 acres on Great Circle Road overlooking Amulet Lake.

“We bought this land in MetroCenter in 2007 with an eye towards developing a build-to-suit facility. Bringing an out-of-state investor into Nashville with this sale really validates our decision to invest in the MetroCenter submarket,” said Cam Sorenson, principal for Southeast Venture. “With its attractive proximity to downtown Nashville, MetroCenter is well positioned to capture more businesses that require high-density office environments. We’re excited to continue to help this area grow and flourish.”

The one-story HealthSpring facilities are located on a campus with ample green space and a 997-space parking area. The two U-shaped buildings mirror each other, with a connecting courtyard in between that serves as an inviting public space where employees can gather for events, lunch or meetings.

HealthSpring, which was acquired by Cigna Corp. in January 2012, uses the campus as the primary location for more than 1,000 of HealthSpring’s 3,600 employees.

CB Richard Ellis Brokers Douglass Johnson and Steve Preston assisted Southeast Venture in the sale.

“There was phenomenal interest from numerous U.S. and global investors for HealthSpring’s office campus, reflecting a continued flight back into the net lease property sectors. Long-term leased, mission-critical facilities located in strong markets like Nashville, are highly desired as they offer investors secured and stable yields over an extended period,” said Johnson. “Private capital and institutional investors alike are taking advantage of cheaper and more abundant capital, creating a very competitive environment for the best income producing properties.”

Southeast Venture’s property management arm will continue to handle the property’s long-term operation and maintenance.

Less than 30 acres of undeveloped land remain in MetroCenter, which is less than 10 percent of the business park’s total usable land of approximately 650 acres.

April Aerial Progress – 12 South Flats

New aerial pictures of the 12 South Flats project. Spring is in the air!

New Aerials — 12 South Flats

Check out our progress…

Nashville CRE Week in Review: Week of Feb. 10

Nashville CRE Links

1. Belmont preps for next construction round — Nashville Post (link)
2. Case Study: Restauranteur takes third swing in 12South — Nashville Business Journal (link)
3. Franklin apartment boom shows no signs of stopping — Tennessean (link)
4. Palmer, Concord ink letter of intent — Nashville Post (link)
5. Site work done for proposed SoBro skyscraper — Nashville Post (link)

Construction Update: 12 South Flats

We wanted to share our newest aerial photos of the 12 South Flats construction. These pictures, taken by Aerial Innovations on Friday last week, pretty much speak for themselves. It’s hard to believe construction started just nine months ago.