Drawbridge Realty is continuing its acquisition spree over the past year — now tapping into Nashville's office sector. The real estate investment firm has acquired Bridgestone Tower in the city's central business district.
Highwoods Properties, which sold the property, reported the deal to be worth $255 million.
The Class AA asset is 100 percent leased to tire and rubber products provider, Bridgestone Americas, Inc. It also serves as the firm's headquarters.
This marks the first entry for Drawbridge into the Nashville market. The San Francisco-based firm said in a statement that the Music City is home to one of the "most dynamic" office destinations in the country, as it sees an opportunity for premium assets in the area to continue luring in tenants.
"Bridgestone Tower is a high-quality, mission-critical asset leased to a major global credit tenant in one of the most attractive investment markets in the country," Charlie McEachron, CEO of Drawbridge Realty, said.
"We're delighted to add such an exceptional property to our nationwide portfolio and to establish Drawbridge's presence in Nashville."
In fact, Avison Young recently reported that Nashville's Class A office leasing surged by 125 percent year-over-year in the first quarter. Also, availability among the property type in the market dropped by 17.4 percent.
Bridgestone Tower was first delivered to the market in 2017 as a build-to-suit for Bridgestone Americas. The 514,000 square foot asset includes amenities such as a fitness center, coffee and juice bar and cafeteria. The property in downtown Nashville is near the Music City Center, the Country Music Hall of Fame and Bridgestone Arena, which is the home of the Nashville Predators.
The acquisition for Drawbridge follows an active last 12 months of offense, where it has now purchased $740 million of assets across 1.1 million square feet. This includes the purchase of Class A office, The Hive, which is located in Costa Mesa, California.
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