JLL arranges $42.9M financing for Nashville creative office
Creative office has taken storm in the periphery of urban Nashville
WASHINGTON, D.C., November 4, 2019 – JLL announced today that it has arranged a $42.9 million capitalization for 3040 Sidco Drive, a 157,000-square-foot creative office conversion project in Nashville, Tennessee.
JLL arranged a joint venture equity partnership between Forstone Capital and an institutional private equity fund for the development, as well as a four-year, floating-rate acquisition and renovation loan through CIT Group.
3040 Sidco Drive is a former 132,000-square-foot industrial building that is being converted to 157,000-square-foot, Class A, creative office space featuring “best-in-class” amenities such as a fitness center with locker rooms, game room, tenant lounge, collaborative work spaces and ample parking. The single-story asset is located on 7.2 acres in the highly desirable I-65 corridor in Nashville between Brentwood and downtown.
The JLL Capital Markets team representing the sponsor was led by Senior Director Jamie Leachman and Director Evan Parker.
According to a recent JLL Research Report, creative office has taken storm in the periphery of urban Nashville. These creative office spaces, whether conversions or ground up developments, are attracting more than just their typical millennial tech jobs. Law firms, healthcare companies, and other traditional users are drawn to the open floor plans and interesting building characteristics of Nashville’s creative office product.
“The marketing process yielded multiple competitive bids for both the equity and debt further demonstrating institutional appetite to invest in Nashville, one of the hottest real estate markets in the country,” said Leachman. “The partnership is poised to capitalize on this growth by reshaping the competitive landscape for creative office with the redevelopment of 3040 Sidco Drive.”
The partnership has hired Bill Adair and Ashley Albright with JLL to handle the leasing. “The repositioning of 3040 Sidco as a creative office building speaks to the demand for this type of product we are seeing in the market. We are excited to work with Forstone Capital on the leasing efforts,” added Adair.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com
Forstone Capital, LLC is a real estate investment firm located in Stamford, Connecticut that provides a full range of commercial real estate services to private equity investors and select individual clients. Since its inception in 2007, Forstone Capital has acquired over 1,300,000 square feet of office, retail, and multi-family properties throughout Connecticut, Nashville, Charleston and Dallas. At Forstone Capital, the company strives to provide its clients with valuable investment opportunities through off-market deal sourcing, intimate market knowledge and hands-on execution of their asset strategies through proprietary leasing, development and management services.