NAI Charter Real Estate Mid-Year Report - 2012 V2.1 414 Vine Street Chattanooga, TN 37403 (o) 423.267.6549 www.naicharter.com
From the President Market Overview The Chattanooga office market has been the most active commercial real estate sector for the first two quarters of 2012. This is specifically the case for the downtown sub-market. Liberty Tower, LLC bought the 192,000 square feet Chestnut Tower from a partnership controlled by Franklin Haney in 2011 and renamed the building Liberty Tower. The property is currently undergoing an extensive $20 million renovation and has attracted two quality tenants, Chambliss Bahner & Stophel which is leasing four floors and the accounting firm of Lattimore Black Morgan and Cain, PC. Both of these companies are moving out of the Tallan Building by year end 2012. The two relocations will cause a scramble to back fill the vacant space. Further, Propex Inc. leased 40,000 square feet in Warehouse Row and is moving from the suburban market to downtown. These three lease transactions total slightly over 120,000 square feet of class A office space. Also, Blue Cross Blue Shield of Tennessee sold its 426 space Broad Street Hub Garage to Sixth Street Limited Partners. The Industrial Market is still feeling positive vibes from the VW plant and their suppliers are continuing to lease space in warehouses in close proximity to the plant. Most of the leases are short term, one to two year leases. A total over 1,500 ancillary jobs and slightly over 850,000 square feet of warehouse leases can be directly linked to VW s seventeen suppliers. However, there are three warehouse properties comprising over 1.2 million square feet that are currently on the market. The most recent news is the Bi-Lo warehouses in the Shallowford Road sub-market were recently purchased and are currently being renovated. Competition will be high for the users over 100,000 square feet. Over all the commercial real estate market is experiencing much better growth and activity in Chattanooga than in most other regional markets. Leasing is steady in all sectors which is great news for property owners. Should you have any interest in talking with NAI Charter about your commercial real estate, please do not hesitate to call. Sincerely, David F. DeVaney, SIOR, CCIM President of NAI Charter Real Estate Corporation
NAI Charter News Highlights NAI Completes BlueCross BlueShield of Tennessee Assignment By Selling Four Downtown Properties BlueCross BlueShield of Tennessee moved into its new 950,000 SF headquarters vacating over 360,000 SF of corporate owned downtown office buildings. BCBST hired David DeVaney, SIOR, CCIM of NAI Charter for the disposition of these properties. Property: Hub Building - 3 story - 33,000 SF Located: Broad and 7th Purchaser: Berry & Hunt Property: Gold Building - 10 Story - 177,022 SF Located: 801 Pine Street Purchaser: DeFoor Brothers Development Property: Historic Miller Brothers Building - 4 story - 132,673 SF Located: 629 Market Street Purchaser: Mesa Associates, LLC Property: Hub Garage - 426 Parking Spaces - 18,000 SF Located: 631 Broad Street Purchaser: 6th Street Limited Partners
Office News Overview 415 & 417 Georgia Avenue $795,000 for both properties 3,539 SF & 4,688 SF Located Downtown near the courthouse 629 Market Street - Miller Building FOR LEASE Rate: $18.00 PSF 1st Floor: 1,905 SF - 14,925 SF 4th Floor: 14,808 SF - 35,844 SF 4115 S Access Road Price - $1,250,000 Building Size - 14,000 SF Located off Hwy 153 Office Leases & Sales Highlighted Transactions 2030 Hamilton Place Blvd - CBL Center I Landlord - CBL & Associates Properties Tenant - Comcast Leased - 5,170 SF Represented by David DeVaney, SIOR, CCIM of NAI Charter 1210 Premier Drive - Pointe Corporate Center Landlord - Pointe Centre Partners, GP Tenant - TEK Systems Leased - 2,457 SF Tenant Represented by J. Bryan Rudisill, SIOR, CCIM of NAI Charter
Industrial News Overview 3916 Volunteer Drive Price: $1,795,000 Building Size: 16,464 SF Located off Bonny Oaks and Hwy 153 99 Textile Lane Price: $3,045,000 40 Acres and 100,000 SF Building Located off I-24 and Cummings Hwy Price - $1,099,000 Building Size - 92,100 SF Located in Decatur, TN 232 Industrial Drive Industrial Leases & Sales Highlighted Transactions 510 Tram Trail - Dunlap, TN Seller - Tecumseh Purchaser - Premier Properties 200,000 SF Industrial Bldg / 40.6 Acres Represented by J. Bryan Rudisill, SIOR, CCIM of NAI Charter 1810 Chestnut Street - Former Southern Fabricators Seller - Regions Bank Purchaser - Stadium Apts, LLC 33,836 SF Industrial Bldg/ 2.24 Acres Represented by Chad & Parker Wamack of NAI Charter
Retail News Overview 6219 Lee Hwy FOR LEASE Price: $11.00 NNN Suite Sizes: 1,240 SF - 5,000 SF Located off Hwy 153 in R&R Plaza 7727 Lee Hwy Price: $347,000 Building Size: 3,350 SF Building Located off Bonny Oaks at Lee Hwy 6012 & 6016 Shallowford Road FOR LEASE Rate: $12.00 NNN Suite Sizes: 2,409 SF - 12,006 SF Located off Shallowford Rd at Hwy 153 Retail Leases & Sales Highlighted Transactions Old BMW Dealership - Brainerd Road Seller - Sonic Automotive Purchaser - Chattanooga Airport 32,138 SF Industrial Bldg / 4 Acres Represented by J. Bryan Rudisill, SIOR, CCIM of NAI Charter 6425 Lee Hwy - Former Circuit City Seller - DZD, LLC Purchaser - International Congress of Churches & Ministers 36,500 SF Industrial Bldg / 3 Acres Represented by David DeVaney, SIOR, CCIM of NAI Charter
Land News Overview 6001 Lee Hwy Price: $2,750,000 Land Size: 23+ Acres Former Brainerd Lumber Yard 4521 Bonny Oaks Price: $1,600,000 4.03 Acres Located off Hwy 153 7148 Lee Hwy Price - $1,430,000 9.79 Acres Located next to Chattanooga State Building Land Leases & Sales Highlighted Transactions Dayton Pike Seller - Marilala Millar Purchaser - Cecil Smith 30 Acres Represented by J. Bryan Rudisill, SIOR, CCIM of NAI Charter Chandler Place @ 34th Street Seller - Chattanooga Housing Authority Purchaser - Alton Place 2009, LP 12.6 Acres Represented by James Fitzpatrick, SIOR, MAI of NAI Charter
414 Vine Street Chattanooga, TN 37403 NAI Charter - 40 Years of Proven Results 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. In 2011, NAI Charter completed over $47 million in commercial and industrial transactions. The 40 year old company has a staff of 7 full-time brokers, 4 holding the CCIM designation, 4 holding the SIOR designation and 1 holding the MAI designation. With the expansion of the Property Management division, we are your one stop shop for all your commercial property needs. How can we help your commercial real estate needs? Mid-Year Report - 2012