Completed in 2003, the property is a 14-story mixed-use building combining office and retail space. It is located at the entrance to Vanderbilt University, across from Centennial Park, and proximate to Nashville’s most affluent neighborhood, Belle Meade.
The strong, in-place tenant base of financial, education, and legal tenants at the time of acquisition included Morgan Stanley, First Tennessee National Bank, Vanderbilt University, and retailers Borders Books, Starbucks, and P.F. Chang’s China Bistro. The building was expected to retain high occupancy during down markets due to its excellent retail amenities, adjacency to a Marriott hotel, and its central location relative to medical, entertainment, education, and professional uses.
Lionstone identified that the strength of the asset was its prominent location adjacent to the University, and a large number of amenities relative to the rest of the market. Lionstone believe that this strength would drive higher occupancies throughout the cycle, and the expansion and renewal of major tenant Vanderbilt University. Upon Vanderbilt’s renewal, Lionstone broke the single lease into three separate leases with staggered expiration dates—this leveraged the strength of a single credit tenant towards full occupancy while minimizing tenant improvements, leasing costs and rollover risk long term.