(Read more on the industrial market.)
NASHVILLE-Newport Beach, CA-based KBS Real Estate Investment Trust has acquired the six-building, 551,184-sf Nashville Flex Portfolio for $53.5 million. The seller was an affiliate of Chicago-based First Industrial Realty Trust.
The acquisition included the following six flex properties: the 72,384-sf Royal Parkway Center I built in 1990, the 75,000-sf Royal Parkway Center II built in 1990, the 135,355-sf Greenbriar built in 1986, the 166,137-sf Cumberland Business Center built in 1998, the 42,015-sf Riverview Business Center I built in 2000 and the 60,293-sf Riverview Business Center II built in 2001. The Atlanta office of CB Richard Ellis represented the seller. KBS represented itself.
The portfolio is 97.5% leased to 36 tenants, including CVS/Caremark, Quest Diagnostics, Caterpillar, Nashville Metro Government, Mercantile Properties Inc., Southwestern Telecom and GSA. Three of the properties area located in the Metro Center submarket, which is in close proximity to the Nashville Central Business District. The remaining properties are located in the Elm Hill Pike/Interstate 40 East submarket, which is close to Nashville Airport.
KBS Capital Advisors regional president Chuck Lindwall tells GlobeSt.com that this is the company's first acquisition in Nashville. The properties in the portfolio are located in infill locations with surrounding properties slated for development to a higher use, which will limit direct competition from new supply in the same category. Also, because future supply will be limited, the portfolio has high current occupancy.
"KBS REIT targeted Nashville as an attractive market due to its consistent job growth," Lindwall says. "It is viewed by well-educated young people as a 'life style' city--a great place to live that is affordable and offers a diverse array of cultural opportunities."
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