KBS Real Estate Investment Trust III (KBS REIT III), a publicly registered, non-traded real estate investment trust based in Newport Beach, Calif., has purchased The McEwen Building, a 175,262-square-foot office building in Cool Springs, Franklin, Tenn., 15 miles south of downtown Nashville. Amstar, headquartered in Denver, was the seller. With the acquisition, KBS and affiliated companies own 726,446 square feet of space in the greater Nashville area.
The McEwen Building is a LEED-designed six-story office building with ground floor retail located in the desirable office, retail and residential submarket of Cool Springs in Williamson County, one of the nation’s most affluent counties. The Building sits within the 93-acre mixed-use McEwen project that offers 370 existing apartments and 45,000 square feet of retail space, including Whole Foods and BrickTops. An additional 40,000 square feet of retail is expected to open in the fall. Amstar was represented by Don Albright of Cushman & Wakefield/Cornerstone in Nashville, while KBS represented itself in the transaction. The deal was KBS REIT III’s fourth acquisition.
“From an asset perspective, The McEwen Building ‘out-leased’ several competitor buildings due to its quality, superior amenities and proximity to Interstate 65,” said Stephen Evans, KBS Mid-Atlantic Region senior vice president and director of acquisitions and dispositions. “From a location perspective, the area has had positive net absorption for the past 10 years, and office vacancy stands at six percent and unemployment is low at seven percent. The building and the market have all the characteristics we are seeking.”
Amstar, in partnership with Southern Land Company, developed the property starting in 2008 on a 10.7-acre site at the intersection of West McEwen Drive and Mallory Lane. Through an aggressive marketing and leasing plan, Amstar and Southern Land Company stabilized the property within two years of delivery. The property is currently 97-percent leased to credit tenants, including Renal Advantage, Mars Petcare, Raymond James, Carlisle Companies, Inc. and Cisco Systems, Inc.
“Amstar is excited to sell the property to such a capable buyer and landlord as KBS,” remarked Amstar Senior Vice President Della Wegman. “While we remain excited about the remaining opportunities at McEwen, we are very pleased to welcome KBS as a neighbor.”
The $40 million transaction is one of the most recent examples of the power of CRE Console’s marketing platform.
On behalf of Amstar’s exclusive representative, Nashville’s Cushman & Wakefield Alliance office, CRE Console created the property’s website which hosted over 325MB of marketing and diligence information.
CRE Console also identified several thousand qualified principal investors to which to market the property. This extensive list of principal investors generated in excess of 100 signed CAs and an undisclosed number of offers, culminating with the sale to KBS Real Estate Investment Trust III.
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