A Northeast real estate company has paid $36.23 million for an Nashville International Airport-area warehouse home to Amazon.
According to a release, it is the first acquisition in the local market for Rye Brook, N.Y.-based LRC Properties. In December, the company purchased the Technicolor Building in Memphis.
2 Dell Parkway spans about 288,860 square feet of warehouse and office space and is located at the address from which its name derives.
LRC partnered on the deal with Machine Investment Group. The seller was a general partnership affiliated with Nashville businessman Jimmy Spradley of Standard Candy Co. The partnership paid $12.7 million for the 32-acre property in 2014, according to Metro records. At one time, Texas-based Dell owned the property.
Brokers Randy Wolcott, founder of NorthStar Real Estate Advisors, and Melissa Alexander with the local office of Orlando-based Foundry Commercial represented the seller and the buyer, respectively.
In addition to Amazon, the warehouse accommodates Averitt Express. It is fully leased.
LRC plans to update the property as a shallow-bay, last-mile warehouse distribution space. It will remove the office space and convert the building’s first floor to industrial warehouse space for smaller users (20,000 to 40,000 square feet).
In addition, LRC will develop an additional estimated 120,000 square feet of warehouse space and add trailer parking on land currently used as parking for the office users.
“We view Nashville as a very key market for us. It is growing at a great pace and is strategically located to service 75 percent of all U.S. markets with one- to two-day truck service and is close to facilities handling one-third of all car and truck assembly in the country,” Karie Nero, LRC principal and CFO said in the release. “Combined with the property being situated adjacent to Nashville International Airport, we believe 2 Dell Parkway is an ideal location able to meet the growing demand for last-mile warehouse space.”
With the purchase, LRC now owns roughly 5 million square feet of commercial properties in the Southeast with assets under management approaching $500 million.
LRC Properties focuses on East Coast commercial real estate investments. In addition to its headquarters in the New York City metro area, it operates offices in Charlotte and Durham, North Carolina, and in Charleston, South Carolina.
Machine Investment Group is a New York-based real estate investment founded by former Garrison Investment Group senior Andy Kwon and Eric Rosenthal.