by Jeff Hamann
Partners Group has sold Philips Plaza, a 435,525-square-foot Class A office asset in Nashville, Tenn., to Wheelock Street Capital for $111.5 million, according to public records. SunTrust Bank originated nearly $72 million in acquisition financing for the buyer, which matures in 2026. The property last changed hands in May 2016, when Lingerfelt Commonwealth sold the building for $74 million, per Yardi Matrix data.
Located at 414 Union St. in the city’s downtown, the 20-story high-rise is a short walk from the State Capitol and shares a block with a 337-key DoubleTree by Hilton. The area is home to numerous retailers, along with other hotels and commercial properties. Some 3.8 million square feet of office space is within a quarter mile of the building.
Philips Plaza has a vacancy rate of 3.1 percent, with a tenant mix including Philips Healthcare, Bank of America and coworking firm Industrious. Since 2015, the building’s previous owners invested roughly $3.5 million in updates, upgrading the asset’s lobby, HVAC system and roof, according to Cushman & Wakefield, which marketed the most recent sale of the asset. The property includes 1,377 square feet of retail and underground parking at a ratio of two spaces per 1,000 square feet.
Roughly 1 mile south of the tower, a joint venture between Endeavor Real Estate Group and Granite Properties broke ground on a 20-story office development last summer. The building is the first phase of a larger mixed-use project slated to contain both multifamily and hospitality components.
Source: Commercial Property Executive