Michael Hayes article in the NBJ

[Hankster]

He think he means the square feet of each lot.

I think he means just to put arbitrary numbers on each lot, say 1 thru 10 so that he can easily refer to them when he's commenting. That's my guess.

[cheeriokid61]

Oh yeah, you're probably right.

[smeagolsfree]

I hope this is what you want. Not pictured would be lot 11, which is the old library lot. I do know there has to be a library on that lot, otherwise the lot reverts to the donating family that gave the land to the city for the old library.

Note lot 10 is an added lot. Its a small surface lot on the corner of 5th and Commerce adjacent to a larger garage.

[ATLBrain]

I'll try fill you in on most of the parcels.

Thanks for the useful info, Michael.

I was wondering about the Sobro area. Specifically, are you aware of any plans for a multi-plex theater there?

[hayesmw]

He think he means the square feet of each lot.

label it 1, 2, 3,4, 5 west to east or east to west. put a number on each block that is outlined.

[hayesmw]

I hope this is what you want. Not pictured would be lot 11, which is the old library lot. I do know there has to be a library on that lot, otherwise the lot reverts to the donating family that gave the land to the city for the old library.

Note lot 10 is an added lot. Its a small surface lot on the corner of 5th and Commerce adjacent to a larger garage.

1. Owned by Central Parking. They have no incentive to sell, as a public company that is focused on current cash flow, they want the parking income. It could be combined with the parcels to the west (if the buildigns could be torn down, which would be challenging) for a nice site. The fellow who developed the lot to the north had plans to develop a 2nd office tower. I think the market dried up. I think a 2nd tower could still be squeezed in to the north. Parking and floor plate size would be a problem as the footprint is pretty small.

2. This is owned by the family that started central parking. Again, current income is key to them. Also, I believe there are some height restrictions on this block. It's also, I think, just outside of a redevelopment district, so there is no TIF available for this site.

3. at about 10,000 SF, this lot is too small to effecitvely develop. I do not think the economics work at this time. It's also owned by 2 different groups I believe. They operate it together as a parking lot.

4. This lot is about 16,000 SF. Again, pretty hard to make work because it's so small. It also backs up to a 10+ story bellsouth switching facility that is a big brick wall with radio towers on top. this kills windows on 1 side of the building.

5. Not too sure about this one. I think there are more buildigns in there and multiple parcels. I think the surface parking lot is only bout 5,000 SF. The buildings to the east again make this hard to make work.

6. Size again makes this one tough. It's ownedby the Church of Christ. They need the parking spaces on Sundsay and do not have much of an incentive to sell.

7. This lot is great. Development is complicated because it's owned by a family trust that cannot sell the lot. The trust is however under contract with Jack Daniels as a part of the museum proposal for the old Acme Feed Store to the north. If the museum goes, this lot should be developed. Even if it does not happen, something should happen on this lot in the next 10 years.

8. Under contract for a long term ground lease to Barry Cos. out of Atlanta to build a new HQ for Bass Berry Simms. If BBS stays put or goes to WES, then this lot should become available again. It's also owned by the Central Parking family members. Ground Lease only.

9. did not see it on the map.

10. Also owned by the Church of Christ who need the parking. It's also too small.

At some point in the distant future, when SoBro develops and the vacant buildigns are full these smaller lots may become viable. At this time though, the economics are too challenging to make the really small lots work.

I'd say 8,7,1,2 will be the the ones to go first, in that order.

Hope this helps.

[ATLBrain]

So BBS is the only big fish available for large new office space DT?? Seems hard to believe!

[smeagolsfree]

Thanks for the insight Michael. This really gives us some info on what can or cannot be developed. I did not realize that Barry had the ground lease on the lot. I knew it had been proposed but that is very interesting news.

Lot 9 is the lot right behind Hume-Fogg HS and on the corner of 7th and Commerce.

[Richard Lawson]

So BBS is the only big fish available for large new office space DT?? Seems hard to believe!

It's the only big tenant left that has been looking. All the other big ones went to Cool Springs. BBS is a difficult one for developers. From what I've heard, the firm wants conditions that developers are hestitant to give. For example, the word is that developers would be able to fill other space in the building but BBS wants the right to takeover the space at will as it expands. That makes it tough for signing long-term leases with other tenants.

[ATLBrain]

Richard, is it your sense that some of those companies might not have moved south if not for new product DT?

[Richard Lawson]

Richard, is it your sense that some of those companies might not have moved south if not for new product DT?

Healthways and Community Health Services were looking toward the suburbs anyway. Another company HMS stayed put in its West End building. Nissan was about the only major option. And I think the company really wanted it's own campus and interstate visibility.

[hayesmw]

It's the only big tenant left that has been looking. All the other big ones went to Cool Springs. BBS is a difficult one for developers. From what I've heard, the firm wants conditions that developers are hestitant to give. For example, the word is that developers would be able to fill other space in the building but BBS wants the right to takeover the space at will as it expands. That makes it tough for signing long-term leases with other tenants.

There are others out there looking for big chunks of space. . . Lead time on these sorts of deals are sometimes 4-5 years out, so it's not something you'll hear about for quite some time, but there are definately a few others out there. SoBro offers one of the most exciting office opporunites in this city's history. Just about anything you could possibly need will be there soon which will be very attractive to office tenant's.

[ATLBrain]

This all begs the question: How much spec space should be available for prospective relocations to a hot destination like Nashville? Is it a build-it-and-they-will-come proposition? Obviously this is a tough one to SWAG b/c there's no way to pinpoint the demand with such long lead-times. I would think that Nissan is more the exception and the norm is a company that would be looking for available space ASAP (like Louisiana Pacific, right?). That in a nutshell may be the developers' game in DT... at least where office is concerned.

On this note, Alex Palmer is making a gutsy move for office, but if it gets filled fairly quickly, then I'd expect that he'd "clean up" with the WES project. There's just no other big-space office product in the pipeline right now.

Michael, I hope you can get something large going in the SOBRO area. I've said it before... Sig would look mighty lonesome without something around 40-50 stories (a'la Omaha's First National Center) near it.

[Richard Lawson]

There are others out there looking for big chunks of space. . . Lead time on these sorts of deals are sometimes 4-5 years out, so it's not something you'll hear about for quite some time, but there are definately a few others out there. SoBro offers one of the most exciting office opporunites in this city's history. Just about anything you could possibly need will be there soon which will be very attractive to office tenant's.

There are always folks kicking the tires, trying to decide whether to stay put or consider brand new space. One of these days, Central Parking will have to move I suspect. It's headquarters office on 21st Ave. has some very crowded parking and I suspect the office space is cramped as well. Wouldn't it be interesting if Central Parking developed it's own lot there on Second Ave. in SoBro into a new headquuarters space? Of course, that would mean having to expand the Central Business District to allow such development.

[ATLBrain]

There are always folks kicking the tires, trying to decide whether to stay put or consider brand new space. One of these days, Central Parking will have to move I suspect. It's headquarters office on 21st Ave. has some very crowded parking and I suspect the office space is cramped as well. Wouldn't it be interesting if Central Parking developed it's own lot there on Second Ave. in SoBro into a new headquuarters space? Of course, that would mean having to expand the Central Business District to allow such development.

I obviously don't know much about CP's strategy/focus, but I know that they're in so many other cities around the world. As such, I have never understood why they do not partner with developers to build/manage the parking component of large buildings. After all, aren't they the actual owners of those lots? IMO, that would make them as much a real estate company as a parking lot company. I'm sure many of them are too small for large buildings, but I know of many that are quite large.

I've also heard that the Carell is a very tightfisted CEO. If true, I'd be surprised then if he would take any initiative on building anything. Still, it's a shame that they don't have a signature (NOTE the generic use of the word) project in their HQ city.

Can somebody give me a little insight on CP's presence in any market where they've been involved in building and managing a large parking component?

[Richard Lawson]

I obviously don't know much about CP's strategy/focus, but I know that they're in so many other cities around the world. As such, I have never understood why they do not partner with developers to build/manage the parking component of large buildings. After all, aren't they the actual owners of those lots? IMO, that would make them as much a real estate company as a parking lot company. I'm sure many of them are too small for large buildings, but I know of many that are quite large.

Can somebody give me a little insight on CP's presence in any market where they've been involved in building and managing a large parking component?

The only own a few pieces of real estate and if I'm not mistaken, it's all in Nashville. And most of that isn't owned by the company, but by the Carrell family. The company manage most of the parking lots through lease agreements and share parking revenue with the property owner. I'm not certain if that is true in all cases, however. Some may be a straight lease and CP keeps all of the revenue. I can't answer that last question. My guess is that CP would argue that it isn't in the development business.

[smeagolsfree]

There are others out there looking for big chunks of space. . . Lead time on these sorts of deals are sometimes 4-5 years out, so it's not something you'll hear about for quite some time, but there are definately a few others out there. SoBro offers one of the most exciting office opporunites in this city's history. Just about anything you could possibly need will be there soon which will be very attractive to office tenant's.

Thanks for the heads up on this Michael. Very interesting indeed. I would like to know who some of those who are looking are. I am sure that you will tell us if you can but I understand the need for being discreet, especially when it comes to real estate speculation.

[hayesmw]

Thanks for the insight Michael. This really gives us some info on what can or cannot be developed. I did not realize that Barry had the ground lease on the lot. I knew it had been proposed but that is very interesting news.

Lot 9 is the lot right behind Hume-Fogg HS and on the corner of 7th and Commerce.

He's got an option to terminate I'm sure if BBS does not materialize.