Fairgrounds site sells

A fairgrounds-area property has sold for about $9.3 million — three times the amount at which it last changed ownership hands a mere four years ago — and its warehouse is slated for a major overhaul from a New York City company.

The address is 1414 Fourth Ave. S., with the property located within an opportunity zone and near Wedgewood-Houston. The buyer was commercial real estate firm Somera Road, which plans to convert the building to creative office and retail uses. According to a release, the project will be called WeHo Crossing and will eventually offer 60,000 square feet of office space and 12,500 square feet of retail and restaurant space. An early-2020 completion is eyed.

The seller was 4th Avenue South Ventures GP. The partnership acquired the roughly 4-acre property in January 2015 for about $2.9 million, according to Metro records.

Lance Bloom, a vice president with Colliers International Nashville, brokered the deal.

Grooms Engine Warehouse previously occupied the now-empty building, which spans about 115,000 square feet and opened in 1950.

The sale is the equivalent of about $80.40 per foot (based on the building’s size).

“As Nashville grows and becomes a prominent global business hub for the knowledge economy, we are seeing substantial demand increase for offices that provides unique and creative workspaces for the millennial employee set. WeHo is no doubt on the verge of becoming the next big neighborhood of Nashville,” Ian Ross, principal of Somera Road, said in the release, adding the site is near the future SoHo House, restaurants, apartments, condos and makerspaces.

“It’s exciting to watch this neighborhood grow right before our eyes and it’s hard to find a more rapidly developing ‘cool’ neighborhood across the country,” he added.

According to the release, Somera Road has enlisted Manuel Zeitlin Architects for design. Charlie Gibson, Cushman & Wakefield, will represent Somera Road on office leases, with Elam Freeman, Baker Storey McDonald Properties Inc., representing the company on retail leases.

Of note, Somera Road plans to update a Gulch property home to a former Gibson Guitar facility. The company will undertake a 45,000-square-foot mixed-use development at the Church Street site, which was the subject of legal action after Gibson decided to sell the property to a different New York investor. The remaining structure at the site was once home to Gibson’s Valley Arts brand (read here).

Somera Road previously acquired a nearby property, also from Gibson, at which it currently is retrofitting what had been a piano showroom so as to accommodate a bowling and arcade facility. The firm also owns two Gibson properties in Memphis, the result of what were the Nashville-based guitar company’s 2018 restructuring efforts. Nashville-based ESa is overseeing architectural work at the future bowling building, the address for which 1121 Church St.

The Somera Road Fourth Avenue South transaction represents the latest in various real estate moves involving properties located near The Fairgrounds Nashville (read herehere and here), Wedgewood-Houston and Chestnut Hill.

Established by Congress in the Tax Cuts and Jobs Act of 2017, opportunity zones are tools designed to stimulate low-income and transitioning communities with private capital. The law provides a federal tax incentive for investors to re-invest their capital gains into so-called opportunity funds.

Originally published by the Nashville Post: https://www.nashvillepost.com/business/development/commercial-real-estate/article/21065663/fairgrounds-site-sells-for-triple-2015-price 

AUTHOR William Williams

Manhattan investor unveils Wedgewood-Houston project

New York-based Somera Road Inc. bought the 4-acre property at 1414 Fourth Ave. S. on April 23 – with plans to overhaul the building, as depicted in this rendering.

A real estate investor from New York City bought a property in the buzzy Wedgewood-Houston neighborhood on Tuesday — with plans to overhaul the industrial building on-site.

Somera Road Inc. now owns the 4-acre property at 1414 Fourth Ave. S., immediately south of downtown. The developer is rebranding the building as “WeHo Crossing,” with plans to create 60,000 square feet of office space and another 12,500 square feet of retail and restaurant space. The project is set to debut in early 2020.

“There is a dearth of high-quality, creative, immediately available, unique space — similar to what Austin went through three or four years ago,” said Ian Ross, managing partner of Somera Road. “We can create that here, rather than some generic steel-and-glass building.”

Somera Road’s development cranks up Wedgewood-Houston’s transformation another notch, coming right on the heels of Apple Music and London-based boutique hotelier SoHo House signing leases for the nearby May Hosiery mixed-use development. (Those developers just revealed plans for another such project in the neighborhood, featuring the iconic guitar-shaped scoreboard from the old Greer Stadium).

Somera Road’s purchase also calls fresh attention to the fact that this fast-changing neighborhood lies within an Opportunity Zone. Those zones, created in the federal government’s 2017 tax law overhaul, grant investors lucrative tax breaks in order to entice them to back developments or companies located in those traditionally low-income areas.

Somera Road’s project is the latest in a spurt of local Opportunity Zone dealmaking that has also included the potential relocation of an aerospace manufacturer to North Nashville, apartments in that same part of town and a development in East Nashville.

Ross said he had been evaluating the prospective purchase before the government finalized its list of Opportunity Zones. “It makes a good deal better. It doesn’t really help make a bad deal good,” Ross said of the tax benefits. “We’re not making deals make sense because it’s in an Opportunity Zone. But it is really additive to our investors, if the deal works.”

The purchase price was not immediately available in public records. A spokeswoman for Somera Road declined to disclose the project cost.

This is Somera Road’s first investment in Wedgewood-Houston, after making its local debut by purchasing two buildings in the Gulch from Nashville’s Gibson Guitar Corp. Ohio-based entertainment concept Pins Mechanical Co. is moving into one of those buildings.

Project team

  • Manuel Zeitlin Architects: design
  • Charlie GibsonCushman & Wakefield: broker representing Somera Road on office leases
  • Elam Freeman, Baker Storey McDonald Properties Inc.: broker representing Somera Road on retail leases
  • Lance Bloom, Colliers International: broker who arranged the land sale

The project would involve 60,000 square feet of office space and 12,500 square feet of retail and restaurant space.

“There is a dearth of high-quality, creative, immediately available, unique space – similar to what Austin went through three or four years ago,” said Ian Ross, managing partner of Somera Road. “We can create that here, rather than some generic steel-and-glass building.”

The existing industrial building on the property will be renovated into this office and commercial space.

This is Somera Road’s first investment in Wedgewood-Houston, after buying two buildings in the Gulch.

Somera Road’s project is named WeHo Crossing.

 

Originally Published By Adam Sichko  – Senior Reporter, Nashville Business Journal

New owners of Century Center want to woo Trader Joe’s to east Modesto with your help

The new owners of Century Center would love to see a Trader Joe’s come into the east Modesto shopping complex. And they’re betting a lot of you do, too.

So they’ve gone as far as erecting signs in front of the shopping center on Oakdale Road asking the public to contact Trader Joe’s about opening at the site. For decades the complex was anchored by Gottschalks department store and Raley’s supermarket before their departures several years ago. But since then it has struggled with vacancies.

Raley’s, which moved out in 2012 after opening its larger location in Village One, finally relinquished the lease it had in the complex at the end of 2018. Before that it had been paying for the vacant space and maintaining its non-compete clause barring other grocery stores from moving into the center.ADVERTISING

But now with that restriction lifted, the center’s new owners have big plans to both renovate and attract new retailers. That includes wooing Trader Joe’s, which already has a location in northwest Modesto near Vintage Faire Mall.

Other planned improvements include major facade work to modernize the look and feel of the shopping complex, which debuted in 1979. Long-time tenants Round Table Pizza and Torii Japanese Steakhouse will undergo updating and major renovations. The center owners will also completely recondition the parking lot and upgrade to LED lighting.

Century Center facade 2
Facade renovation renderings of the new Century Center, which has new owners who plan to upgrade the center and hope to attract new retailers. The retails shown in the rendering are illustrative only, and not currently contracted at the center.
GRACEADA PARTNERS/SOMERA ROAD INC

New York-based commercial real estate firm Somera Road, Inc. and local investing group Graceada Partners, LLC. purchased the 214,389-square-foot retail center in November for $12.25 million. Already they have three new tenants lined up to move in: Satellite Healthcare, Golden Valley Healthcare and Taqueria El Maguey.

Ryan Swehla, who leads the Central Valley real estate investment group Graceada Partners along with fellow NAI Benchmark principal Joe Muratore, said the new tenants plus updates should help to return the center to its status as a retail epicenter for east Modesto. They hope that will include Trader Joe’s, and it’s not all just wishful thinking. He said they’ve been in contact with Trader Joe’s representatives and begun discussions with the company.

“We are taking a very hands-on approach to recruiting them to the center. We posted the signs to generate community feedback to Trader Joe’s expressing the strong demand that we know exists. We are in early discussions with them although there is by no means certainty around their interest in locating there. But we know Trader Joe’s listens to their customers,” Swehla said.

The signs, posted before the holidays, read, “Do you want to see Trader Joe’s here? If so, please let them know: www.traderjoes.com/contact-us/location-request.” The large white placards, which use the Trader Joe’s red company logo, are posted at the north and south ends of the center along Oakdale Road.

Mr Century Center 2
Signs asking the public to contact Trader Joe’s are posted along the corners of Century Center on Oakdale Road in Modesto, Calif. Jan. 3, 2018. Marijke Rowland MROWLAND@MODBEE.COM

Trader Joe’s opened its Dale Road in 1993, and it remains a popular and busy shopping draw. Ask anyone who has stood in line at the Modesto TJ’s on any given Sunday and you’ll understand the desire for another location in the city.

For decades Century Center, on the opposite side of town, had one of the few large grocery stores on the east side with Raley’s, attracting residents from the populous nearby neighborhoods. The complex currently has 10 restaurants, ranging from long-running spots like Ridgway’s and the Ice Cream Co. to Jamba Juice and Pizza Hut. The new taqueria will move into space next to Vision First Optometry. The two healthcare centers will move into space near the back of the complex.

Graceada Partners and Somera Road representatives said they’re excited about the center’s future prospects.

“With these new tenants and updates, Century Center is quickly becoming the mixed use, lifestyle center that we envisioned when purchasing the property,” Swehla said. “Overall we are excited for the rejuvenation of this once bustling retail epicenter of east Modesto.”

Original post: https://www.modbee.com/news/business/biz-columns-blogs/biz-beat/article223980305.html