A joint venture of GBT Realty Corp. and Koch Real Estate Investments recapitalized One22One, a recently completed, 24-story office tower in Nashville, Tenn., with a $174.6 million senior construction loan originated by Canyon Partners Real Estate and J.P. Morgan. JLL Capital Markets represented the borrower.
GBT and Koch completed One22One at 1221 Broadway, in the Gulch neighborhood, a year ago. The partnership had secured a $141 million construction loan for the Class A tower in April 2020 from Mack Real Estate Credit Strategies.
The largest office project completed in Nashville in 2022, the building has 373,232 square feet of office space, 16,938 square feet of retail space and 13 stories of parking. A conference center, outdoor terrace, tenant lounge and fitness center are some of the tower’s amenities. Post-pandemic safety features include individual HVAC systems on each floor and touchless technologies such as keyless access to tenant suites and elevators.
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Major tenants include Bradley Arant Boult Cummings LLP, a national law firm, and Slalom, a global management consulting company. FirstBank, the third largest Tennessee-based bank, has also leased 52,000 square feet at the property, on floors 13 and 14; some of that space will include FB Financial Corp.’s headquarters.
Just off Interstate 40, the tower is 1 mile from the Tennessee State Capitol and downtown Nashville and 2 miles from Nissan Stadium. A Whole Foods Market is across the street and there are more than 20 dining options within a 1 mile-radius. Several retail and entertainment options are also nearby.
George Tomlin, president & CEO of GBT Realty, said in a prepared statement the recapitalization positions the joint venture partners to take advantage of the rising demand and provide workspaces and amenities that companies are seeking in a post-pandemic environment. Matt Stewart, managing director of JLL’s Capital Markets group, added office properties like One22One continue to outperform and drive tenant and capital demand, particularly in a challenging capital markets environment.
Nashville’s robust office pipeline
Nashville had more than 3.3 million square feet of rental office space under construction as of July, a 5.8 percent expansion of existing stock that put the metro in the second spot nationally for new space underway as a percentage of stock, after Austin, according to a recent CommercialEdge report. However, only three projects totaling 509,000 square feet have started construction in the last 12 months.
One of the largest new office buildings will come online within the $1 billion mixed-use Nashville Yards project. Southwest Value Partners is developing the 566,000-square-foot tower for Amazon.