May 12, 2021
CRC Enters Nashville Market With Acquisition of 111 Broadway In Downtown District for $36 Million
Three-story asset constructed in 1930 is anchored by Rock Bottom Brewery and is 100% leased.
BALTIMORE, MD (May 5, 2021) – Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has announced the acquisition of 111 Broadway, a 50,303 square foot mixed-use property located in downtown Nashville, Tennessee and anchored by Rock Bottom Brewery. The asset, acquired for $36 million from Tower Investments, Inc., is 100% leased and represents CRC’s second investment in the greater Nashville marketplace. CRC also owns Fortress Grove Apartments, a 320-unit multifamily community located in Murfreesboro, Tennessee which was acquired in 2017. Anthony D’Ambrosia of Marcus & Millichap’s New York City office represented the seller in this sales transaction.
Constructed in 1930 and positioned on the Lower Broadway corridor of downtown Nashville just one block from the Cumberland River, the three-story asset has been extensively renovated over the past 5 years including improvements to the roof, windows, exterior and elevator systems.
The Lower Broadway corridor, with its diverse offering of restaurants, retail shops and entertainment venues including the Bridgestone Arena and the Ryman Auditorium, is recognized as one of the busiest tourist attractions in the country, with more than 15.2 million people visiting the area annually. The property is located less than one mile from Nissan Stadium, home of the Tennessee Titans and the host of special events including the Country Music Awards. More than 230,000 people are projected to reside within five miles of 111 Broadway in 2023, including more than 100,000 households with an average annual income approaching $75,000.
An Irreplaceable and Iconic Asset
“The Lower Broadway corridor has an extremely high barrier to entry and 111 Broadway presented a rare opportunity to secure an irreplaceable and iconic asset with tremendous upside,” stated Josh Dinstein, Senior Vice President, Acquisitions for Continental Realty Corporation. “Based on the coming addition of residential, commercial and hospitality developments in the near future, we believe in the trajectory of Nashville and the Broadway corridor and we are confident about the prospects to deliver a solid risk-adjusted yield to our investors with this acquisition.”
Apple opened its newest Nashville store in March, approximately three blocks from 111 Broadway at Brookfield’s Fifth + Broadway. Last year, Amazon revealed its intention to open an “Operations Center of Excellence” less than one mile from the property at Nashville Yards. Amazon’s Center will include more than 5,000 employees earning an average salary of $150,000. Construction is also underway on the Four Seasons Nashville Hotel and Private Residences, a 40-story, $400 million development situated less than 1/3 mile from the site. In addition, Nashville Yards, a development projected to cost more than $1 billion, will include more than 3.5 million square feet of Class “A” office space, 1,000 residential units and 1,100 hotel rooms less than one mile from 111 Broadway.
Nashville Ranked Fourth Best Economy in the Country
“Nashville is ranked as the fourth best economy in the United States and the population in the immediate area of 111 Broadway is expected to increase by nearly 10% over the next several years,” stated JM Schapiro, CEO of Continental Realty Corporation. “Combined with the outstanding fundamentals, economic drivers and vibrancy of downtown Nashville, we view this acquisition as a tremendous investment that will create long-term value. The continued addition of new commercial office, hospitality and entertainment elements in the immediate proximity were compelling reasons for this purchase.”
111 Broadway overlooks the Cumberland River and has direct access to the pedestrian bridge that leads to Nissan Stadium, the Music City Grand Prix and other attractions. Additional companies and institutions with a presence in Nashville include AllianceBernstein, Oracle and Vanderbilt University. The site is approximately nine miles from Nashville International Airport.
Continental Realty Corporation (CRC) is focused on acquiring value-add retail and multifamily properties located throughout the Mid-Atlantic and Southeast regions of the United States. Headquartered in Baltimore and founded in 1960, CRC is a full-service commercial real estate and investment company. The privately-owned firm owns and manages a diversified portfolio of retail centers consisting of more than five million square feet of commercial space, as well as nearly 10,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the portfolio’s value exceeds $2 billion. For additional information, visit www.crcrealty.com.
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