KKR Pays $76M for Nashville Logistics Asset
KKR has paid $76.2 million for a two-building industrial campus in Nashville, Tenn., public records show. The firm financed the purchase with a $42 million loan from Forethought, due to mature in 2034.
The seller was a joint venture between LRC Properties and Machine Investment Group, according to CommercialEdge information.
The Class A logistics property, 2 Dell Parkway, is adjacent to the Nashville International Airport. The partnership acquired the initial 289,000-square-foot building in 2021 and expanded the property by developing a 119,700-square-foot facility that came online last year.
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The two-building asset features cross-dock and rear-loading capabilities alongside 30- and 32-foot clear heights. The 32-acre campus also includes a truck court, ESFR sprinklers and 36- by 36-foot column spacing. Amazon has been a tenant at the property since 2019, having leased nearly 100,000 square feet at Building 1 for a same-day shipping fulfillment center.
The location provides access to the larger Tennessee area via the nearby interstates 24, 40 and 65. Downtown Nashville is approximately 10 miles away.
Nashville’s industrial scene
The Nashville industrial market continues to remain in demand. According to the most recent CommercialEdge industrial report, Nashville ranked third among the Southern metros, trailing Miami and Atlanta, in terms of rent growth as of March, at 7.5 percent. The metro also led the South for vacancy rates, which averaged 3.3 percent.
As for sale prices, Nashville occupied once again the first position, with properties trading at an average of $164 per square foot, followed by Dallas-Fort Worth at $145 per square foot and Tampa at $136. However, the investment volume was one of the smallest in the U.S. year-to-date as of March, totaling some $58.6 million, according to CommercialEdge information.
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