The lease agreement with 100 Oaks Plaza LLC, the Dallas-based investment group which acquired the 850,000-sf mixed-use property in December, calls for Vanderbilt University Medical Center to occupy the entire second floor of the mall, the third level of the mall and the entire office tower. "When we purchased 100 Oaks Mall in December 2006, we recognized the property's tremendous potential as a mixed-use retail and office development," Anthony T. Ruggeri, a partner in 100 Oaks Plaza LLC and M&R Investors LLC, says in a statement. "Its location near Downtown at the I-65 and Armory Drive interchange is one of its many desirable features. Obviously, the presence of Vanderbilt will create more day traffic for retailers, resulting in positive benefits for the community."
Ruggeri declined to reveal the rental rate; however, he tells GlobeSt.com that the rate for the 12-year deal is consistent with the Nashville office market. CB Richard Ellis puts the average office rate in Nashville at $17.01 per sf for the second quarter.
With the deal, Vanderbilt plans to move 20 medical clinics to 100 Oaks. Accounting, patient billing and other administrative offices will also call the address home. Build out of the space is under way.The Vanderbilt lease brings the property to approximately 95%; however, Ruggeri says they are negotiating several leases to put the property at 100%--and beyond with outparcel space the owners are creating.
Ken Leiser, senior vice president at CBRE, represented Vanderbilt. Janet Sterchi, vice president, and Lisa Maki, both with CB Richard Ellis, handle office leasing for 100 Oaks Plaza LLC.
"The Vanderbilt lease marks the beginning of the total redevelopment of this property as a commercial, shopping, office and medical environment," explains Frank Mihalopoulos, partner in 100 Oaks LLC and M&R Investors, in the statement. Other tenants at the mixed-use site include Michaels, CompUSA, TJ Maxx, PetSmart and Regal Cinemas.
"The property was built in the late '60s as the first enclosed mall in Nashville. It was redeveloped in the mid-'90s as a power center downstairs and an outlet center upstairs. The third floor was mothballed," Ruggeri tells GlobeSt.com.
The owners are working with the Nashville Metro Council to realign the traffic lights, clean up the egresses and ingresses to the property, and they are working with adjoining properties to make the signals consist. In addition, the partners are redeveloping the facade of the property. "With medical office upstairs it has to have more of a mixed-use look and functionality," Ruggeri explains. He declined to put a price tag on the redevelopment, adding it is a significant amount of money.
"The revitalization of 100 Oaks will drive redevelopment along the Thompson Land and Nolensville Road corridors," Metro Council member Anna Page says in a statement. Page represents District 16 where the property is located. "I have spent time with [the owners] and Vanderbilt officials working on plans to improve area roads, interchanges and walkways. I foresee that the presence of Vanderbilt will bring restaurants, boutiques, retail shops and other community-focused services and jobs to this area of the city."
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