Baar-Zug, Switzerland, 25 May 2016
Partners Group, the global private markets investment manager, has agreed to acquire Bank of America Plaza, a Class A office tower located at 414 Union Street in Downtown Nashville, in the US state of Tennessee, on behalf of its clients. The property was purchased from Lingerfelt CommonWealth Partners, LLC, a Richmond-based real estate investment firm, which will continue to operate the asset following the acquisition. The transaction has a total value of USD 74 million.
Bank of America Plaza is a 20-story, 435'525 square foot office tower conveniently located in the heart of Nashville's Central Business District. The property provides immediate access to the Tennessee State Capitol and Supreme Court, as well as to a number of downtown amenities and entertainment venues, including the brand new Nashville Convention Center. Partners Group plans to execute a value-added business plan in order to bring the property's occupancy level to capacity, while maintaining the well-diversified tenant mix of manufacturing, financial services, and information technology companies.
Ron Lamontagne, Managing Director, Private Real Estate Americas, Partners Group, comments: "Downtown Nashville has experienced significant revitalization over the past few years, with local municipalities striving to create an ideal work and leisure environment for the rising population. The area boasts a competitive cost of living as well as a pro-business environment which has driven job growth. With its strategic location, Bank of America Plaza is perfectly situated to cater to Nashville's business community and reach its full occupancy potential."
Partners Group, which has offices in Denver, Houston, New York and San Francisco, recently completed the acquisition of two other property portfolios in the US on behalf of its clients. In April, Partners Group and Westmount Realty Capital, LLC announced the purchase of a portfolio of 19 multi-tenant, light industrial assets totaling approximately 1.5 million square feet in the greater Chicago area in Illinois. The majority of the portfolio is located in close proximity to Chicago's O'Hare International Airport and is ideally positioned to benefit from the increase in logistics and light industrial demand across the region.
Also in April, Partners Group and Accesso Partners, LLC announced the acquisition of Riata Corporate Park, an eight-building, 688'433 square foot office campus in northwest Austin, Texas, on behalf of their clients. The property is well located for corporate and technology companies, with major tenants including Accenture, Quality Systems, NetSuite and Xerox. Riata, which is set to benefit from Austin's growth as a US technology hub, also has full permission for the development of a new 64'550 square foot office building.
Pamela Alsterlind, Partner and Co-Head Private Real Estate, Partners Group, states: "The recent acquisitions are a great fit with our investment strategy of acquiring properties with clear value creation potential, in markets supported by strong industry-led tailwinds. In the US, we believe regional logistics hubs like Chicago, or burgeoning technology or financial centers like Austin and Nashville, continue to represent pockets of outsize growth compared to the broader market."