A three-parcel SoBro site located near the Korean Veterans Boulevard Roundabout has sold for $13 million, with the new owner having added to the land on which it plans a major project to include what will be one of the city's most distinctive skyscrapers.
The newly bought parcels have addresses of 706 Drexel St., 514 Eighth Ave. S. and 522 Eighth. The new owner is Dallas-based Lincoln Property Co., which created Circle South Residential (TN) LLC for the purchase. In a release, Lincoln Property said it made the purchase with Mirasol Capital, which is also Dallas-based.
In November 2019, Lincoln paid $27 million for six parcels sitting adjacent to the just-sold property at the intersection of Eighth and Lafayette Street near Music City Center. Lincoln is eyeing for that segment of the overall site a 30-story office high-rise, a leaning structure that would sit on the roundabout. Lincoln has dubbed the project Circle South (read more here).
Lincoln, which focuses on the development and management of residential buildings, acquired all the properties (both those in late 2019 and recently) from LLCs affiliated with South Rock Ventures, which is co-based in Tennessee and California and includes investor David Byerley. In late 2018, Byerley reportedly wanted to redevelop the site with a hotel. However, the South Rock Ventures website lists no developments or real estate holdings and it remains unclear as to Byerley’s level of development experience, if any.
Via Circle South Partners LLC, Byerly seemingly paid $3 million in September 2018 for the three just-sold parcels, according to Metro records. He paid $21.08 million at the same time in 2018 for the six parcels he later sold to Lincoln for $27 million in late 2019. In short, Byerly paid about $24 million for all the parcels he ended up selling to Lincoln for $40 million, and he seemingly owns no others within the overall footprint.
Lincoln, which developed the sites home to 909 Flats in Hope Gardens and what was then called Aspire in Midtown, has announced Stewart Lyman and Charlie Gibson of Cushman & Wakefield will provide leasing services for its office tower.
“Circle South will be the highest-quality office ever developed in Nashville, offering amenities, views, and level of finish unparalleled anywhere in the market”, said Gibson, a managing director at Cushman.
Earlier this year, Nashville Business Journal reported Lincoln has an option to lease two other adjacent parcels, owned by Smith & West Inc., one on Drexel and the other on Lea Avenue.
At one time, the African Methodist Episcopal Church owned the properties before selling to South Rock. The multi-parcel property Lincoln bought in late 2019 collectively spans a potentially — depending on reconfiguration of Lea Avenue — 1.9 acres. That transaction was the equivalent of about $326 per square foot. The most recent deal, given the property is about 0.89 acres, is the equivalent of about $335 per square foot. As such, Lincoln now owns about 2.9 acres.
“This three-acre assemblage is ideally located at the gateway to the CBD, well suited for world-class mixed-use development,” Tyler Jones, a Lincoln Property executive vice president, said in the release.
Across Eighth, under-construction residential and retail tower 805 Lea is almost topped.