"Nashville is a targeted market for expansion for BH Properties and this was our first of many transactions," Henry says. "We have more than $250 million to spend in 2008, and we are aggressively focused on acquiring more properties in growing areas such as Nashville."

The seller, BGK Tennessee Office Associates Partnership, was represented by Ashley Compton, of CBRE Nashville. BH Properties vice president of acquisitions Scott Henry represented BH Properties. The acquisition price was not released, but some recent sales in the Nashville area have included the $14.2-million sale of the 77,000-sf Virginia Way Plaza in Brentwood and the $13.8-million sale of Country Music Television's headquarters at a 118,082-sf building at 330 Commerce Way in Nashville.

According to a CB Richard Ellis Q4 Nashville office market report, the Nashville office market was experiencing a 10.92% vacancy rate at the end of the quarter. During the quarter, there was 221,768 sf of positive absorption and over one million sf of positive absorption year-to-date. Average asking rental rates are $18 per sf.