Knighthead Funding has provided Elmington Capital with $29 million in first mortgage debt for the acquisition of a two-story Class A office building in Franklin, per a press release.
Built in 2008 for Verizon, the 180,000-square-foot Class A office building sits on an 18.7-acre parcel at 455 Duke Drive in Franklin and features a new suite of amenities including fitness and conference centers and substantial parking. A portion of the loan proceeds from the four-year financing will be used to pay for tenant improvements and other costs associated with stabilizing the property, which is currently partially occupied by Lowes Hotels.
“With the low cost basis of the acquisition and Elmington Capital’s experience with similar suburban office assets, we are confident in its ability to provide the type of space needed to meet the demand for quality Class A space in the submarket,” said Knighthead Principal, Jonathan Daniel.
The property is situated in the Cool Springs area of the Nashville MSA, which is home to 13 of the 25 largest publicly traded companies in the Nashville area and the location of the corporate headquarters of Lee Company, Mars Petcare, Jackson National Life Insurance, Tractor Supply Co. and many other large companies. Williamson County is the fastest growing county in Tennessee, boasting approximately 15% growth over the last five years, and is ranked among the wealthiest counties in the U.S., enjoying a highly educated workforce, says the release.
Elmington Capital has completed more than $1.5 billion in real estate projects during its 12-year history, including several similar buildings within the submarket.
“Nashville is a dynamic market with strong fundamentals,” added Knighthead Vice President Peter Illuzzi, who originated the loan. "The building’s prime location should make it extremely desirable to a large cross-section of businesses located in suburban Nashville."