Reed District: 8 towers ranging from 8 to 44 stories (500'?), 1.5 million sq. ft. office space; 1,000 residential units; 150K sq. ft. retail space; 250 room hotel on 12 acres at NE corner of Broadway and 16th Ave. North

[smeagolsfree]

More utility markings running down West End in front of the Subaru Dealership. Looks like NES and gas markings. Something seems to be now moving forward especially with the markings on the vacant car lot.

My guess is the next step we see is a huge real estate transaction. Hines just announced a $750 million fund for mixed use projects across the country and this one came to my mind right off the bat. 

[Rick Dalton]

Lots of pressure here

[markhollin]

Hines is too well funded and ambitious to let this site be as underutilized in the way the initial proposal by the mystery developer across the street at the Beamon lot is doing.  If anything, Hines is licking their chops when they see that kind of Mickey Mouse stuff as their "competition."

[nashville born]

It's funny.  About a year ago when I discovered UP, I remember thinking the Reed proposal was just blah.  Now, all my hopes and dreams for this area of town are rooted in that very same proposal.

[smeagolsfree]

But we can’t count our chicks before they hatch, something bad could happen………………..to make the deal go south.

[Luvemtall]

49 minutes ago, smeagolsfree said:

But we can’t count our chicks before they hatch, something bad could happen………………..to make the deal go south.

Oh no! …. Does the magic 8 know something? Please not another heartbreak.

[BnaBreaker]

They're probably thinking, 'oh god, we don't want to be neighbors with that dumpster fire over on the Beaman lot... hard pass.' 

[smeagolsfree]

Reed site core drilling 

[markhollin]

Jim Reed Automotive Inc. is in two separate lawsuits over its 11 acre property. Martin Management Group, Inc.(which currently operates the Hyundai and Subaru dealerships on the site since 2011) is suing for rights to the property at 1406-1408 Broadway.  Hines Investments Management Holdings out of Houston (with plans for a 6 tower development on the site) signed a purchase contract for the land with Reed in 2020, and they are also suing, alleging that Reed violated the contract. 

With both Martin Management and Hines asking for their property rights to be enforced, Jim Reed Automotive faces a major dilemma. If an arbitrator rules in favor of Reed Automotive, Hines could follow through with its land buy. But if Martin Management comes out on top, Hines would lose its chance to buy the land if Martin Management could match the price of Hines’ purchase offer.

More at NBJ here:

https://www.bizjournals.com/nashville/news/2021/09/14/reed-development-lawsuit.html?cx_testId=40&cx_testVariant=cx_34&cx_artPos=0#cxrecs_s

[smeagolsfree]

I had heard there was big trouble in little China. This explains it.

BTW, anyone having issues signing in or posting replies or messages? Sometimes I can get in and sometimes not. Downtown resident is not able to sign in.

[Mr_Bond]

1 hour ago, smeagolsfree said:

I had heard there was big trouble in little China. This explains it.

BTW, anyone having issues signing in or posting replies or messages? Sometimes I can get in and sometimes not. Downtown resident is not able to sign in.

Me, too.  I had to close the tab and get some actual work done.  When my Pomodoro said it was break time again, the UP site was working again.

[BnaBreaker]

1 hour ago, markhollin said:

Jim Reed Automotive Inc. is in two separate lawsuits over its 11 acre property. Martin Management Group, Inc.(which currently operates the Hyundai and Subaru dealerships on the site since 2011) is suing for rights to the property at 1406-1408 Broadway.  Hines Investments Management Holdings out of Houston (with plans for a 6 tower development on the site) signed a purchase contract for the land with Reed in 2020, and they are also suing, alleging that Reed violated the contract. 

With both Martin Management and Hines asking for their property rights to be enforced, Jim Reed Automotive faces a major dilemma. If an arbitrator rules in favor of Reed Automotive, Hines could follow through with its land buy. But if Martin Management comes out on top, Hines would lose its chance to buy the land if Martin Management could match the price of Hines’ purchase offer.

More at NBJ here:

https://www.bizjournals.com/nashville/news/2021/09/14/reed-development-lawsuit.html?cx_testId=40&cx_testVariant=cx_34&cx_artPos=0#cxrecs_s

So if Martin Management Group wins their lawsuit, would they be likely to keep the site as car dealerships?

[downtownresident]

42 minutes ago, BnaBreaker said:

So if Martin Management Group wins their lawsuit, would they be likely to keep the site as car dealerships?

IIRC, they bought land on Brick Church Pike for a new dealership and seem to be moving forward on it. 

[MLBrumby]

It's all about money. The Hines lawsuit is a defensive move. Everything hinges on the Martin Management. The solution will be to offer them an option to buy the property, but at the purported sales price they are not likely to buy that site to run a car dealership.  I've arbitrated similar type (not nearly this large!!) property disputes. If I were to guess here, they want money and a timeline. I'm not privy to this (or Beaman) but it looks like Beaman's deal was done much more cleanly.  If the Reeds had any entanglement wrt Martin, then that's easy to uncover. Then any damages Martin claims will be arbitrated.  If Hines still wants the land, they're likely well-suited to move in after Reed/Martin clean up their lawsuit.  This could be resolved in weeks, but if there are ill feelings, that could be dragged out. If the arrangement (sale) from Reed to Martin has been reported correctly, they have no claim (or prospect) of taking over the whole facilities that the Reed dealership occupied.  If Hines is serious about their original intent with this property, they'll just wait to see what happens.  If I were advising either Reed or Martin, I'd try to get some lease concessions for Martin for a defined period (reasonable for them to move) and various 'sweeteners' and move on with a timeline approved by Hines. 

Edited September 14, 2021 by MLBrumby

[Rick Dalton]

A car dealership has no business being within the core of the city. With an estimated land price of $100m, what can Martin really do here? Can’t imagine anyone is opening up nine figure car lots.

[LA_TN]

4 hours ago, MLBrumby said:

It's all about money. The Hines lawsuit is a defensive move. Everything hinges on the Martin Management. The solution will be to offer them an option to buy the property, but at the purported sales price they are not likely to buy that site to run a car dealership.  I've arbitrated similar type (not nearly this large!!) property disputes. If I were to guess here, they want money and a timeline. I'm not privy to this (or Beaman) but it looks like Beaman's deal was done much more cleanly.  If the Reeds had any entanglement wrt Martin, then that's easy to uncover. Then any damages Martin claims will be arbitrated.  If Hines still wants the land, they're likely well-suited to move in after Reed/Martin clean up their lawsuit.  This could be resolved in weeks, but if there are ill feelings, that could be dragged out. If the arrangement (sale) from Reed to Martin has been reported correctly, they have no claim (or prospect) of taking over the whole facilities that the Reed dealership occupied.  If Hines is serious about their original intent with this property, they'll just wait to see what happens.  If I were advising either Reed or Martin, I'd try to get some lease concessions for Martin for a defined period (reasonable for them to move) and various 'sweeteners' and move on with a timeline approved by Hines. 

I wish we knew details about the current lease, when it ends, etc. This may be more about seeking $$$ reimbursement for moving expenses and timeline, as you noted. Thanks for the insight

[nashville born]

This is not the kind of news hoped for, especially in light of the disappointment across the street.

[smeagolsfree]

16 hours ago, LA_TN said:

I wish we knew details about the current lease, when it ends, etc. This may be more about seeking $$$ reimbursement for moving expenses and timeline, as you noted. Thanks for the insight

I think that is the nail on the head of the matter. Or the hammer on the nail.

[smeagolsfree]

It seems as if Hines now has the property rights to the Reed site according to the NBJ. https://www.bizjournals.com/nashville/news/2021/10/08/hines-reed-lawsuit-development.html

Jim Reed Automotive Inc.'s Midtown development site has been the subject of disputes for more than a year, facing lawsuits from competing potential buyers. New court filings suggest one of those prospective buyers, Hines Investment Management Holdings Limited Partnership, has dropped its lawsuit and could now have new legal rights to 1406-1408 Broadway, which is one slice of Reed's larger 11-acre site.

Whatever rights and claims that Martin Management had under its original right of first refusal agreement, this document suggests that those rights have been transferred to and are now held by Hines,” said David Anthony, a commercial litigation lawyer at Anthony Legal PLLC in Nashville, who reviewed the documents at the request of the Business Journal; he is not involved in either lawsuit.

What I think this means is that Hines will buy the Martin dealership out of the first right of refusal. Hines has dropped the lawsuit against the Reed family. The article says some lingering court issues could go on, but this thing is about over IMO.

[TNMichigander]

10 hours ago, smeagolsfree said:

It seems as if Hines now has the property rights to the Reed site according to the NBJ. https://www.bizjournals.com/nashville/news/2021/10/08/hines-reed-lawsuit-development.html

Jim Reed Automotive Inc.'s Midtown development site has been the subject of disputes for more than a year, facing lawsuits from competing potential buyers. New court filings suggest one of those prospective buyers, Hines Investment Management Holdings Limited Partnership, has dropped its lawsuit and could now have new legal rights to 1406-1408 Broadway, which is one slice of Reed's larger 11-acre site.

Whatever rights and claims that Martin Management had under its original right of first refusal agreement, this document suggests that those rights have been transferred to and are now held by Hines,” said David Anthony, a commercial litigation lawyer at Anthony Legal PLLC in Nashville, who reviewed the documents at the request of the Business Journal; he is not involved in either lawsuit.

What I think this means is that Hines will buy the Martin dealership out of the first right of refusal. Hines has dropped the lawsuit against the Reed family. The article says some lingering court issues could go on, but this thing is about over IMO.

What a great piece of news! The dealerships have no place in that corridor going forward; they're a visual and logistical blight to the development of the West End canyon. I can't wait to see how the areas develop around big projects like this, as locations like this will certainly become magnets for further density.

[smeagolsfree]

This is a great relief to me and I am sure to many on the board as I see this as great news. Martin has had no intention of staying here as they have land up on Brick Church Pike. All they wanted was money for their trouble.

As I had said in a previous post, I spoke to someone who had seen the renderings of some of the buildings and they were supposedly quiet impressive.

Hopefully that will be the next thing we see. We all know this will be a multi phase project.

[downtownresident]

Hoping for the sale to close soon, and for some renderings. Would also love to know what their plan is for the brick building along Church street is, that could be a really cool space. 

[UrbanWes03]

3 hours ago, downtownresident said:

Hoping for the sale to close soon, and for some renderings. Would also love to know what their plan is for the brick building along Church street is, that could be a really cool space. 

They have a great opportunity to integrate the old with the new. Hopefully they will do so well. 

[smeagolsfree]

I am looking for some Street activation for that long dead space. I have been here for over 25 years and as far as I know it has been vacant for that entire time..

[samsonh]

10 minutes ago, smeagolsfree said:

I am looking for some Street activation for that long dead space. I have been here for over 25 years and as far as I know it has been vacant for that entire time..

What do you think of the development prospects of the country delite property? Also any thoughts on smokeless tobacco/goodwill properties in next 5-10 years?