NAI Charter Real Estate Semi-Annual Report - July 2011 Chattanooga, Tennessee 414 Vine Street Chattanooga, TN 37403 (o) 423.267.6549 www.naicharter.com
From the President Letter from David It is an exciting time to live and work in Chattanooga. A few years ago we used the phrase Chattanooga s a great place to live; now let s make it a great place to work. In 2010 we accomplished this. Even in a difficult economy, Chattanooga was able to land the VW Assembly Plant, the Amazon Distribution Centers and support expansion from existing companies like McKee Baking Company, Alstom and Coca-Cola Bottling Company. This effort will increase employment and spur the economy for years to come. A unique feature for Chattanooga is Electric Power Board s announcement of America s first 1 gigabyte internet service throughout the city limits. This connectivity has drawn national attention and will affect Chattanooga s growth in the future by attracting technology and entrepreneur growth. Even downtown Chattanooga continues to flourish. There was a concern with BlueCross Blue- Shield moving into a new facility and vacating over 450,000 SF of downtown properties but this has not been as stressful as first thought. The purchase and renovation of Liberty Tower by Berry & Hunt with Chambliss Bahner Stophel as the major tenant is the first trophy deal in over ten years. Another exciting project for downtown is Defoor Development s purchase of the BlueCross BlueShield of TN Gold Building. This iconic building is poised for redevelopment and we look forward to seeing whether this building is restored for office or hospitality use. NAI Charter also continues to thrive and in 2010, we had one of our best years. We are seeing strong activity in the office leasing and owner occupied properties. We are increasing value to our clients by exceeding expectation everyday. NAI Charter looks forward to the continued growth of Chattanooga and we are glad to play a small role in the city s success. If you have any questions or would like to discuss your real estate needs please do not hesitate to contact us. Sincerely, David F. DeVaney, SIOR, CCIM President of NAI Charter Corporation
Top Transaction of 2010 Featured Property SOLD BlueCross BlueShield Gold Building 801 Pine Street Downtown Chattanooga Sold By: David F DeVaney, SIOR, CCIM NAI Charter Corporation President Class A Office Building Located Downtown Central Business District 10 Story - 177,020 rentable square feet 2.75 acres Originally constructed in 1970 as the home office of BlueCross BlueShield of Tennessee. The structure is considered by most as the premier signature office building in downtown Chattanooga. The building was designed by famed Atlanta Architect, John Portman.
Office News Featured Properties Miller Building 629 Market Street FOR SALE - Class A Office Building See Agent for Details on Pricing 147,720 RSF Building / 426 spaces Located Downtown Central Business District CBL Center 2030 Hamilton Place Blvd FOR LEASE - Class A Office Space $24.00 PSF Available: 2,436 SF - 5,170 SF Located near I-75 and Hamilton Place Mall SunTrust Building 629 Market Street FOR LEASE - Class A Office Space $17.50 PSF Available: 2,105 SF - 7,450 SF Located Downtown Central Business District Market Center 820 Broad Street FOR LEASE - Class A Office Space $25.00 PSF Available: 2,925 SF - 7,625SF Located Downtown Central Business District
Office News Featured Transactions 5600 Brainerd Rd - Eastgate Town Center Landlord - Eastgate Town Center Tenant - Unitrin Direct (formerly Merastar) Leased - 53,015 SF Renewal Tenant was represented by David DeVaney, SIOR, CCIM of NAI Charter. For more than 30 years, Unitrin Direct has specialized in providing auto and home insurance to employee groups and associations nationwide; and has over 6 million policy holders, over $8B in assets, and an "A-" (Excellent) rating from the insurance rating firm, A.M. Best. Eastgate Town Center was built in 1962 and has gone through major renovations over the past 50 years. Eastgate Town Center houses various agencies of the State of Tennessee, two satellite college campuses, a call center, as well as medical and insurance administration offices. 736 Market St - SunTrust Office Tower Landlord - Simpson Organization Tenant - TractManager Leased - 14,900 SF ( 10th and 11th Floors) Expansion Landlord represented by Jeff Jennings, CCIM of NAI Charter. Tenant represented by David DeVaney, SIOR, CCIM of NAI Charter Headquartered out of Saddle Brooke, New Jersey, TractManager s Chattanooga operation center will provide organization proven technology and expertise for cost effective and efficient contract management. The SunTrust building, which is exclusively leased by NAI Charter, is one of Chattanooga s premier downtown office towers. More than $1 million dollars has recently gone into further enhancing this iconic building. Only one full floor is currently available in the 18 story building.
Industrial News Featured Properties 4075 S. Access Road FOR SUB-LEASE $10,000 Per Month Building - 22,061 SF / Office - 4,563 SF 1 - Loading Dock / 5 - Drive In Lot Size - 5 acres 2131 Polymer Drive FOR LEASE or FOR SALE $3.50 SF NNN or $1,390,000 Size: 40,000 SF divisible to 20,000 SF 6 - Loading Docks / 2 - Drive In Lot Size - 3.72 acres 2100 Amnicola Hwy FOR LEASE $2.35 SF NNN Size: 500,000 SF (125,000 SF Increments) 59 - Loading Docks / 2 - Drive In Lot Size - 25.53 acres 4191 S. Creek Road FOR LEASE or FOR SALE $2.75 SF NNN or $1,900,000 Size: 55,000 SF (Office - 5,200 SF/Warehouse - 49,800 SF) 10 - Loading Docks Lot Size - 4 acres
Industrial News Featured Transactions 4162 South Creek Rd - Amnicola District Seller - Development Company of America Purchaser - Chickasaw Management 61,500 SF Industrial Building / 4 acres Purchase Price - $1,650,000 Purchaser represented by David DeVaney, SIOR, CCIM of NAI Charter. Seller represented by Jeff Jennings, CCIM of NAI Charter. Chickasaw Management will be leasing the property to South Atlantic Galvanizing (SAG). SAG is one of the regions premier sources for hot dip galvanizing services and products. They provide rapid quality coating services for manufacturers and fabricators throughout the Southeast. Founded in 1942, Development Company of America is a real estate development and investment firm headquartered in Westminster, Maryland. 348 Industrial Drive - Ringgold, GA - Former Prebul Ford Dealership Seller - Regions Bank Purchaserer - Post Commercial, LLC 34,115 SF Car Dealership / 6.1 acres Purchase Price - $900,000 Purchaser represented by Chad Wamack and Parker Wamack of NAI Charter. Seller represented by Chad Wamack and Parker Wamack of NAI Charter. Post Commercial, LLC is the owner and operator of Global Parts, Inc which is the supplier of brand new repair parts, maintenance items and accessories for heavy duty trucks and trailer industry. Global Parts, Inc specializes in brake, suspension, cargo control, lighting, electrical, exhaust, filtration and body parts for all makes of over-the road trailers and trucks.
Retail News Featured Properties Belle Island Pigeon Forge, TN FOR SALE $15,500,000 Buildings - 283,260 SF / Land - 18.06 acres Retail Complex - 12 Buildings Bridgeview 4 Cherokee Blvd FOR SALE - $884,000 FOR LEASE - $20.00 PSF Building - 135,000 SF / Available - 4,420 SF Multi-use building anchored by SunTrust Bank Rush Fitness Complex 6933 Lee Hwy FOR SALE $6,986,055 ($83.75 PSF) Complex - 83,410 SF / 9.5 Acres 5 - Current Tenants / 2 - Available Suites R&R Plaza 6219 Lee Hwy FOR LEASE $11.00 PSF NNN Available Space - 1,240 SF - 5,000 SF High Traffic Count and easy access to Hwy 153
Retail News Featured Transactions 7351 Commons Blvd - Former Ethan Allen Store Seller - Cornerstone Bank Purchaser - Eras Mines/Art Creations 12,800 SF Retail Building Purchase Price - $1,150,000 Seller represented by David DeVaney, SIOR, CCIM of NAI Charter. Art Creations was founded in 1973 and is the oldest art and frame shop in Chattanooga. Currently located on Frazier Avenue, Eras Mines, President and Owner, is adding a second location in East Brainerd off Gunbarrel. 5123 Hixson Pike Two Locations Landlord - Austin Rentals Tenant - Ace Cash Express Leased - 3,000 SF Tenant represented by Jeff Jennings, CCIM of NAI Charter. 3754 Ringgold Road Landlord - Osbourne Building Tenant - Ace Cash Express Leased - 1,925 SF Tenant represented by Jeff Jennings, CCIM of NAI Charter. Ace Cash Express has 1,800 corporate stores nationally and has expanded into the Chattanooga area with 2 new locations in Hixson and East Ridge.
Property Management Overview NAI Charter offers a full service property management program that encompasses a unique hands on approach. We serve as a single point-of-contact for both the owner and the tenant, providing streamlined communication. We devise and implement a plan that maximizes cash flow and return on your investment, ultimately creating additional value. SUMMARY OF MANAGEMENT SERVICES Administrative: Annual Budgets Billing and Collections Monthly Reports Property Tax Consulting CAM Reconciliation Management: Tenant Relations On Site Inspection Leasing Lease Enforcement Construction Management Lease Administrations Maintenance: Preventative Maintenance Programs On Call 24-Hour Maintenance Competitive Bidding of All Work Inspection of Work Performed Vendor Relationships Maintenance Reports Management Team: David DeVaney, SIOR, CCIM President David has been with NAI Charter since 1988. He has a degree in Finance from Auburn University and holds the SIOR and CCIM designations. Amie Thomas Property Manager Amie has been with NAI Charter since 2003. She has a degree in Accounting and Finance from University of TN at Chattanooga. CPM Candidate. NAI Charter s property managers stay on top of industry trends by participating in organizations such as Institute of Real Estate Managers (IREM) and Building Owners and Managers Association (BOMA). As part of NAI, we share best practices and stay on the absolute cutting edge of the industry. Contract Us: NAI Charter Management Company 414 Vine Street Chattanooga, TN 37403 Phone (423) 267-6549 Mary Brannon Administration, Marketing & Maintenance Mary has been with NAI Charter since 2008. She assists with tenant correspondence, maintenance and marketing items.
Market News IN THE NEWS Overview January 2011 - Intelligent Community Forum Chattanooga named One of the World s Seven Most Intelligent Communities. Chattanooga was recognized as one of the world s seven smartest cities in 2011 by the Intelligent Community Forum (ICF), an economic and social development think tank that studies 21st Century growth within the global community. The ICF cited Chattanooga s tremendous strides in air quality control, its transformative downtown revitalization, its improved standards for secondary education with integrated career training and its fully accessible 1,000 megabit-persecond residential Internet service as the primary reasons it was selected as a Top Seven City. May 2011 - Intelligent Community Forum Chattanooga Wins National Recognition for America s Largest Fiber Network. The Chattanooga area won national recognition for deploying America s Largest and fastest fiber-to-the-home network at the 2011 Broadband Properties Summit held in Dallas, Texas. This award is the latest in a string of national and international awards recognizing Chattanooga s fiber optic network, which is capable of delivering gigabit internet speeds to every home and business in a 600 square mile area. We are the best place in America for entrepreneurs who are working to define the future of the Internet as everyone else will experience it in five to ten years. said City of Chattanooga Mayor Ron Littlefield. New Developments The Chamber s successful Chattanooga Can Do program continues to attract the attention of internationally recognized companies, said Trevor Hamilton, Vice President of Economic Development for the Chattanooga Chamber of Commerce. Volkswagen Group of America, Chattanooga Operations was awarded the 2011 Governor s Environmental Stewardship Award for Building Green. The Volkswagen facility in Chattanooga has completed its $1 billion plant on a 1,350 acre site. The 1 million SF facility is expected to produce over 150,000 cars annually. The direct employment is over 2,000 with 14,000 ancillary jobs. The Chattanooga manufacturing facility will build the allnew 2012 Passat Sedan, specially designed for the North American market. Amazon announced it will build two fulfillment centers in Tennessee, one at Enterprise South Industrial Park in Chattanooga and the other along State Route 308 in the neighboring Bradley County. Amazon plans to invest up to $139 million to construct the two new facilities, with up to 1,400 jobs expected to be created in the next 3 years. The new fulfillment centers are expected to be operational before the 2011 holiday season.
Agents & News Team of Professionals David F. DeVaney, SIOR, CCIM President 22 years experience Graduate of Auburn University Society of Industrial & Office Realtors Certified Commercial Investment Member Rotary Club Board of Directors - Chattanooga Area Chamber of Commerce Accomplishments: J. Bryan Rudisill, SIOR, CCIM Vice President 22 years experience Graduate of East Tennessee State University Arnold E. Farmer, SIOR, CCIM Vice President 33 years experience Graduate of University of Tennessee at Chattanooga James G. Fitzpatrick, SIOR, MAI Broker 36 years experience Graduate of Mississippi State University Society of Industrial & Office Realtors Certified Commercial Investment Member Current Officer in SIOR Chapter Past President of East TN CCIM Chapter Society of Industrial & Office Realtors Certified Commercial Investment Member BOMA Past President of Commercial Industrial Division Of Chattanooga Association of Realtors Society of Industrial & Office Realtors Appraisal Institute Chad Wamack, Broker July 2010 - Tahoe 100 100 mile race in Utah. April 2011 - Cohutta 100 100 mile Mountain Bike Race. May 2011 - Scenic City Marathon 26 mile trail race. June 2011 - Chattanooga Mtn Stage Race 3 day - 20 miles per day trail race Jeff B. Jennings, CCIM Broker 7 years experience Graduate of University of Tennessee Certified Commercial Investment Member Past President of Commercial Industrial Division Of Chattanooga Association of Realtors Baylor School Alumni Board E. Parker Wamack Broker 35 years experience Graduate of Middle Tennessee State University Kiwanis Club Board of Directors - Boyd Buchanan School Chad Wamack Broker 12 years experience Graduate of University of Tennessee Certified Commercial Investment Candidate Board of Directors Commercial Realtors Council
About Us NAI Charter Full Service Commercial Brokerage, Leasing, Consulting and Management Firm Warehouse, Industrial, Office, Retail, Multi-Family and Land Services Disposition & Acquisition Representation Landlord & Tenant Representation Property Management Services Full Service Development and Built-to-Suit Services Appraisals NAI Charter s track record as the leader in Commercial Real Estate is unmatched in our market. NAI Charter is consistently number one in annual transaction dollar volume in the Chattanooga area. Our approach is to be client driven and results oriented providing timely and accurate market information with the highest level of trust, respect, fairness and integrity. The Chattanooga Team That Produces Results. 414 Vine Street Chattanooga, TN 37403 (o) 423.267.6549 www.naicharter.com