Starwood REIT Acquires Nashville Offices for $260 Million
February 19, 2020 | Margaret Armour | Blue Vault
Starwood Real Estate Income Trust Inc. is set to acquire the office component of a mixed-use, 25-story building located at 222 Second Ave. S. in Nashville, Tennessee, for approximately $260 million.
The two-year-old, LEED Gold-designated building totals 391,000 square feet, including 362,000 square feet of office space. The acquisition will include the building’s garage as well. The remaining 29,000 square feet is separately owned retail space that is 98% leased. Its tenants include Bank of America, Ernst & Young, law firm Burr & Forman, architectural firm Gresham Smith, and Universal Music. The building was developed by Nashville-based C.B. Ragland and Houston-based Hines.
Starwood Capital Group is the sponsor of the nontraded real estate investment trust Starwood Real Estate Income Trust, Inc., which currently operates in four reportable segments: Hotel, Multifamily, Office, and Real Estate-Related Securities.
The seller of the office space is a joint venture between JP Morgan Asset Management and Hines. The venture is represented by Eastdil Secured.
This acquisition comes roughly one week after the Starwood Capital Group sold Nashboro Village in Nashville for an estimated $140 million.
Sources: S&P Global Market Intelligence, Real Estate Alert, Multi Housing News, Blue Vault
