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 18
th
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.
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