Arizona firm sets record for priciest land buy in Nashville

Brookfield-backed buyer now owns one of downtown’s last vacant parcels

Fundamental Income Properties' Chris Burbach (Getty, Fundamental Income Properties)
Fundamental Income Properties' Chris Burbach (Getty, Fundamental Income Properties)

Fundamental Income Properties has once again made headlines by shattering its own record for the priciest land deal on Lower Broadway. 

The Arizona-based real estate investment firm recently acquired a small parcel at 201 Broadway for an eye-popping $16.25 million, the Nashville Business Journal reported, citing Metro records. This 2,178-square-foot piece of a downtown parking lot translates to approximately $7,461 per square foot, marking one of the highest prices ever paid for land in Nashville.

The acquisition means Fundamental Income Properties now owns the entire parking lot, which is one of the few remaining undeveloped spots on Lower Broadway. The firm had previously set a record with its 2022 purchase of the adjacent parcels, at 203 and 205 Broadway, for $15.25 million. That deal equated to $5,834 per square foot for 2,614 square feet, setting a benchmark at the time.

The whole parking lot, situated at the corner of Second Avenue and Broadway, covers just over one-tenth of an acre. Old Town Trolley Tours of Washington, the seller in both transactions, purchased the site in 2015 for $5.05 million, or $1,053 per square foot. Since 2016, the company has operated its business from the 201 Broadway location, selling tickets and dispatching trolleys.

Lance Bloom, principal and chairman at Colliers Nashville, represented the seller in the latest deal.

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Fundamental Income Properties, a Phoenix-based firm specializing in sale-leaseback transactions, is backed by Brookfield Asset Management, which manages over $925 billion in assets. Brookfield previously owned the Fifth + Broadway mixed-use development, which it sold to Northwood Investors for $787 million in 2022.

It remains unclear what Fundamental Income Properties plans for the Lower Broadway site. The firm could not be immediately reached for comment.

Despite a dip in commercial real estate closings last year, downtown Nashville has seen a surge in investment activity. In April, Menlo Equities, a California-based investment firm, purchased the Truist Plaza building for $84.5 million. A month later, Host Hotels & Resorts acquired the downtown 1 Hotel and Embassy Suites for $530 million.

—Rachel Stone

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