February 22, 2024
Boyle Investment Co. Expands Cool Springs Footprint with Acquisition of the McEwen Building
Sets Sights on Increased Connectivity in Popular Submarket
Through Addition of $48.75 Million, 175,000-Sq.-Ft. Mixed-Use Building
FRANKLIN, Tenn. (2/22/2024) – Boyle Investment Co. (Boyle) is furthering its reputation as a community builder by expanding its footprint in the heart of Cool Springs through the acquisition of The McEwen Building for $48.75 million from KBS, one of the largest owners and operators of premier commercial real estate buildings in the nation.KBS Real Estate Investment Trust III, Inc. acquired the building in 2012.
The 175,000-square-foot Class A office building with ground-floor retail offerings is located at 1550 West McEwen Drive in the popular McEwen Southside development. It sits directly across West McEwen Drive from the Boyle-managed McEwen Northside, a 45-acre mixed-use development that has positioned itself as one of the area’s top destinations.
Situated on 11 acres, the seven-story McEwen Building is strategically positioned west of I-65 and provides tenants with direct access to more than 30 restaurants, 70 retailers, eight hotels, and seven fitness studios – many within a three-minute walk.
“When our team first focused on this portion of Cool Springs with McEwen Northside, we felt there was an opportunity to create a unique district in Cool Springs to become the center of activity,” said Jeff Haynes, Partner for Boyle Nashville. “Our goal from the onset has been to create that, to stitch together these great pieces in a highly walkable area and create an ecosphere that benefits tenants and the local community alike. The purchase of The McEwen Building helps us further that vision.”
Built in 2009, The McEwen Building anchored the first phase of the McEwen Southside development, becoming one of the first office buildings in Cool Springs to offer ground-floor retail options. It currently boasts a 95% occupancy rate with 15 businesses and retail and restaurant tenants. Kaiser Aluminum’s world headquarters occupies the building’s top floor, and tenants including Brixx Wood Fired Pizza + Craft Bar, Title Boxing Club and Massage Luxe occupy the ground floor.
The LEED registered and Energy Star Gold-rated building recently underwent more than $2.1 million in capital improvements during its previous ownership with KBS and provides tenants with numerous onsite amenities, including fitness options, a patio and courtyard and a coffee bar and café. It neighbors a picturesque green space the Boyle team hopes to activate through events, further cementing the location as a gathering place for the community.
“Every acquisition we make is community-minded,” said Haynes. “With The McEwen Building, we’re going to do the little things year after year, those finer points that make a difference in an already great place. We can’t wait for tenants and community members to see what’s in store.”
The McEwen Southside development has emerged as a popular destination in the market since its completion in 2014 with upscale residential units, an onsite Whole Foods and retail and dining options including PureBarre, Lululemon, and BrickTops – all centered around the McEwen Building.
Nashville continues to be a popular commercial real estate market for investors, notes Allen Aldridge, senior vice president, co-director of asset management for KBS and the asset manager of The McEwen Building.
“With its foothold in the area’s top live-work-play destination and surrounding amenities, The McEwen Building is located in one of the highest rent-growth environments across the Southeast U.S.,” says Aldridge. “Given the 112,000 square feet of new and renewal leases we have signed for the building since the pandemic, The McEwen Building is solidly positioned in the Nashville market.”
According to Marc DeLuca, KBS CEO and eastern regional president, “KBS identified an opportunity to capitalize on a high-performing property to achieve additional liquidity in the current debt environment,” says DeLuca. “Our ability to bring the building to nearly 100% occupancy, particularly in today’s challenging office leasing and investment climate, and to have an asset trade at a 5% discount from its 2022 valuation, is a testament to our solid asset management expertise, the strength of core office assets as well as the strength of the Nashville market.”
Samir Idris, David Meline and Crews Johnston of Cushman & Wakefield represented KBS in the sales transaction. “The McEwen Building provides the buyer a best-in-class asset with no near-term capital requirements, walkable to McEwen Northside, one of Nashville’s top retail and entertainment attractions,” says Idris.
According to Bruce Fischer, Co-Chair of West Coast Real Estate and Co-Managing Shareholder of the Orange County Office for Greenberg Traurig, which represented KBS as legal counsel in the disposition with the assistance of Shareholder Howard Chu and Paralegal Amanda Kennedy: “We were pleased to work with KBS in the disposition of The McEwen Building as the Nashville market continues to attract office users.”
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About The Development
MCEWEN SOUTH SIDE OFFICE SPACE
McEwen Southside is a LEED-registered Class A office space located in the heart of Cool Springs in Franklin, Tenn. Strategically positioned in the area’s top live-work-play destination, McEwen Southside is highly walkable and offers easy interstate access. Its 175,000 square feet boasts full-height glass ceilings with incredible views, a coffee lounge and café, outdoor patio with water feature, and on-site fitness options, all steps away from popular shopping and eating experiences, luxury living, and interactive green spaces.
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