Page 6 - 1400 18th Ave

6 | Cassidy Turley
Investment Highlights
Rare Mid-Town Nashville Office Investment
1400 18 th Avenue South represents the first mid-town
office investment of significant size to come to the
market in recent years. The area has always been
attractive to investors due to strong valuations and
proximity to Vanderbilt University. The area, otherwise
known as Music Row, sits among the most prominent
neighborhoods in Nashville. Opportunities to invest here
are coveted.
Positive Market Dynamics
Nashville continually ranks among the premier cities for
corporate relocations, quality of life and pro-business
government. Despite the recent downturn in the
national economy, the city has weathered the economic
storm far better than its peers. Demand for office
buildings such as 1400 18th Avenue South has been
and is expected to remain strong as investors seek well-
located assets with potential for long term rent growth.
These advantages coupled with a highly visible location
in the heart of Music Row has the building poised to
outperform its peer properties over the long term.
Barriers to Entry
Despite the strength of the Nashville economy, the
region has seen little new speculative construction in
recent years. The challenging topography surrounding
much of the city limits the cost effectiveness and
viability of new projects. While there are some nearby
development parcels, it is unlikely that there will be
significant speculative construction in the near term
without substantial pre-leasing.
Stabilized Near-Term Cash Flows with Strong Upside
The property offers both substantial and consistent
near term revenue with a tenant base of strong
credit companies, Sony and Vanderbilt University.
The building is situated in a submarket experiencing
significant rental growth due to high demand and the
cost of new construction. The asset is expected to
generate higher returns after the in-place leases expire.
Numerous Area Amenities
There are numerous amenities within walking distance
of the building including banks, restaurants and general
services typically found in a Class A office environment.
Given its location close to Vanderbilt University, the area
has a higher than average concentration of unique and
high-end retail establishments.
Discount to Replacement Cost
This offering represents a significant discount to
replacement costs. Current estimates for comparable
new Class A construction in the area are in excess of
$275 per square foot.