MIXED-USE BUILDING BOOM
Nashville Yards
Center , and West — with a separate phase planned for the repurposing of a second standalone , 300,000-sf building that sits along Lakewood Boulevard . The recently completed East phase encompasses 340,000 sf of Class A office , including its own branded CoLab coworking space and turnkey spec suites , 35,000 sf of flex space , 30,000 sf of retail , and a 20,000-sf fitness space .
The Bell Works model is about creating a suburban metropolis that bustles with activity . “ What makes Bell Works special is that we create a pedestrian street right down the middle , which we call “ On the Block .” It ’ s a Main Street that runs right through the building , and it is the heart and soul of everything ,” says Ralph Zucker , president of Somerset Development .
“ Bell Works ’ metroburb model was conceived well before COVID-19 ,” says Jeff Garibaldi , CCIM , president of the Garibaldi Group , the leasing team marketing office space at Bell Works Holmdel . “ Today , more than ever , providing a dynamic employee experience is the No . 1 priority for companies looking to relocate , so these kinds of spaces have more appeal than ever .”
Leasing activity at Bell Works Chicagoland has been strengthening as employees return to the office . As of mid-May , the leasing team had signed 18 office leases for a total of over 120,000 sf . “ The metroburb concept is alive in Chicagoland ,” says Stephen Kling , principal with Colliers International , who heads up the office leasing effort for the project . “ The building is rapidly developing its own demographic that will help define the retail that will fill our retail corridor along the block .”
Somerset is currently working on pre-leasing of its West phase . Once that is complete , the developer will move on to the Center phase , which will consist largely of event space , including a ballroom and an indoor basketball court . Somerset is also in the process of getting site plan
approval for the first phase of its residential development , which is expected to include 175 townhomes .
In addition to the design , which was led by NPZ Style & Décor , one of the keys to success for Bell Works has been its management , programming , and an open-door policy that helps to create a community . “ It ’ s not just about building the space — it ’ s about how it ’ s managed ,” notes Zucker . Having security on site is important , too . That means people can walk with their kids or their pets . Somerset also brought in a hospitality concierge trainer to train its security personnel on how they can better engage with people . “ The ultimate amenity in any mixed-use environment is people ,” he says .
CASE STUDY : NASHVILLE YARDS Location : Nashville , Tenn . Developer : Southwest Value Partners
Synopsis : Nashville Yards is a $ 2 billion development that sits on an 18-acre site in the heart of downtown Nashville . When complete , the project will be a walkable , urban community that features 3.5 million sf of Class A office space , 1,000 residential units , 400,000 sf of retail and entertainment space , and 1,100 hotel rooms .
Nashville is seeing a surge in mixed-use development activity that is helping to position the city as a major live-work-play destination .
“ We definitely see a lot of traction as it relates to these mixed-use projects , particularly in the core of the city along Broadway ,” says Courtney Pogue , CCIM , Nashville ’ s economic and community development director . Broadway is the main thoroughfare for the city ’ s entertainment district , a hub that attracts millions of visitors each year . One major project that is reshaping Upper Broadway is the $ 2 billion Nashville Yards . The mixeduse project sits on an 18-acre site in the heart of downtown .
Nashville Yards includes the 591-room luxury Grand Hyatt Nashville , which opened in 2020 ; the newly renovated Union Station Nashville Yards ; Amazon Nashville ’ s two Class A office towers comprising more than one million sf ; a 650,00-sf , multi-tenant Class A office tower , which will include the future headquarters of Pinnacle Financial Partners ; a 1.3-acre park ; multiple green spaces and plazas ; and additional retail , restaurant , and residential buildings . The project also features an entertainment district with a 4,000-person live music venue and eight-screen cinema . The entertainment district is being jointly developed by Southwest Value Partners ( SWVP ) and Anschutz Entertainment Group , with construction beginning early this year .
Roughly 100 people per day are moving to the Nashville metro , and the live-work-play lifestyle is one of the things attracting people to the area , Pogue says . The city also offers more affordability than what people can find in other urban centers , he adds .
One of the challenges from a city ’ s perspective is making sure its infrastructure keeps up with development . In response to its rapid growth , the city introduced a new transportation plan in 2020 followed by the creation of a Department of Transportation in 2021 . “ Right now , we are in the throes of doing the city ’ s first economic development strategy along with working on a comprehensive housing policy for Nashville to address the growth that is taking place in the core of the city ,” says Pogue . “ We ’ re definitely looking at ways to still have a mixture of uses for mixed-use developments , but also providing housing at different income bands so that housing is attainable for all residents of Nashville .”
Beth Mattson-Teig A freelance business writer based in Minneapolis .
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COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE SUMMER 2022