A Chicago player continues to zero in on Nashville’s booming industrial market.
Brennan Investment Group has paid $25.9 million for the 221,000-square-foot warehouse complex at 5006 Harding Place in the Antioch neighborhood, southeast of downtown Nashville, the Nashville Business Journal reported. The price comes to roughly $117 per square foot. Brennan received a $20 million loan from Chicago-based Associated Bank to help fund the purchase.
It acquired the two-building complex from a venture of local firm Jim Crossman Realty and David Rawlings, which bought the 9-acre site for $5.7 million in 2006.
CBRE brokers Jack Armstrong, Will Goodman and Steve Preston represented Brennan, while Ben McKnight and Mike Russell of Nashville-based Horrell Company represented the sellers.
The property is fully leased to seven tenants, including KwikShip, Veho and Fox Moving Storage.
Brennan, one of the nation’s largest industrial property owners, is bullish on Music City; the latest purchase marks the firm’s fifth acquisition in Nashville since 2019. In October, Brennan bought a 75,000-square-foot warehouse in East Nashville for $10.2 million, or $136 per square foot.
More than 1.7 million square feet of Nashville industrial space was leased in the first quarter, marking a 30 percent increase year-over-year, the outlet reported, citing CBRE.
Nashville’s industrial vacancy rate fell to a record low of 3.2 percent at the end of 2022 amid surging demand, partly driven by the pandemic’s acceleration of e-commerce. However, overzealous builders have led to some oversupply, with vacancies rising to just over 5 percent in the first quarter, according to Avison Young. Both of those vacancy rates included sublease space.
Meanwhile, Brennan plans to invest heavily in the Antioch property over the next 12 months, said Andrew Mazey, Brennan’s vice president for the Nashville region.
—Quinn Donoghue
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