Hall Capital sold Nashville debut real estate investment at 54-60 Music Square East to OakPoint Investments.
July 7, 2017 | Getahn Ward | Tennessean
An Oklahoma-based private investment firm has sold the Music Row office building that marked its Nashville real estate debut for $11.4 million, just over 30 percent more than it paid 3 ½ years ago.
Hall Capital sold the three-story, 41,495 square foot building at 54-60 Music Square East to OakPoint Investments, a division of a commercial real estate investment and advisory firm.
OakPoint plans renovations to the lobby and common areas of the fully leased building where First Tennessee Bank, City National Bank and Power Management are among the current tenants.
The acquisition is Nashville-based OakPoint’s second purchase on Music Row. In May 2014, the company paid $1.38 million for a building at 2 Music Circle S. for its corporate offices.
"Music Row is just not for those in the music industry," said Justin Albright, a principal in OakPoint Investments, whose office portfolio is just shy of 1 million square feet. "More than ever, companies are locating here because of convenience and accessibility to the interstate, and retail amenities instead of fighting traffic into downtown. There are very few traditional multi-tenanted office buildings on Music Row, making this a great long-term investment for us."
OakPoint is committed to growing its owned portfolio in Nashville, officials said in a statement.
After buying 54-60 Music Square East in fall 2013, Hall Capital paired up last year with Nashville-area developer Pat Emery to pay $8.15 million for a Midtown site at the northeast corner of 18th Avenue South and Chet Atkins Place. Construction is underway on the 18th & Chet mixed-use project, which is expected to include a 10-story office building with street-level retail space.
Fred J. Hall, Hall Capital's chairman and CEO, has an undergraduate degree from Vanderbilt.
Since 2011, the OakPoint Investments division of OakPoint Real Estate has acquired nearly $300 million in assets across four states. In addition to Nashville, OakPoint Real Estate has an Austin, Texas, office.
Broker Neil Dyer of commercial real estate firm CBRE represented OakPoint in its latest Music Row acquisition.