Charlotte buyer snags popular retail development by Music RowJune 8, 2017
A team of Nashville and Atlanta investors has sold a majority interest in their popular neighborhood retail development, three years after buying the properties and recruiting trendy eyewear company Warby Parker and other tenants.
Asana Partners now owns a controlling stake in the Edgehill Village development in Midtown Nashville, steps from famed Music Row, where the country music recording industry was born more than 60 years ago. The development is home to Edgehill Cafe and Taco Mamacita — and now retailers and restaurants including Warby Parker, J. Crew, jeans maker Beija-Flor and Barcelona Restaurant and Wine Bar.
Charlotte-based Asana was created in 2015. In January of this year, the retail-focused real estate company finished raising $500 million of equity investments. The Nashville transaction was disclosed in public records filed June 8.
"We're always looking for exceptionally well-located, dynamic shopping centers where the retailers are authentic and it's connected to the neighborhood and community," said Terry Brown, a managing partner at Asana.
"Nashville is a priority market for us," Brown added. "It's a market we have a lot of enthusiasm for. It's a dynamic city evolving in an interesting and engaging way, and it's very attractive from the institutional-investor perspective."
Brown declined to disclose what Asana paid for its controlling stake in the ownership group. Nashville real estate investors Rob Lowe, Elliott Kyle and McClain Towery, as well as Atlanta investor Jay Weaver, bought Edgehill Village more than three years ago for $8.9 million. Those four investors now are minority owners of the development.
"I don't think you'll see any transformational changes at Edgehill Village," Brown said. "It's been very well-operated and well-run. We'll have additional capital to invest both in the facilities and to continue to make the retailer and merchandising mix more dynamic and relevant, in an environment where consumers expect that."
In a separate transaction, Asana paid that original ownership group $6 million for an adjacent 0.6-acre parking lot. That's a price of $230 per square foot for the land — a remarkable figure that reflects the sharp escalation of Nashville property values. Just that $6 million for the parking is equal to two-thirds of the $8.9 million that the four-person investor group paid for the entire property in March 2014.
Brown said he intends to keep the property as a parking lot. "That parking is very important to the retailers," he said.
Messages to Lowe and Kyle were not immediately returned Thursday.