July 6, 2022

High-profile Midtown retail property sells for $56M

Photo by Eric England

A multi-parcel Midtown retail property home to Tin Roof and DawgHouse Saloon, among other bars and restaurants, has sold for about $56 million, with a development of the site’s surface parking lots being eyed.

According to a Davidson County Register of Deeds document, the new owner, via three LLCs, is real estate development and investment firm Hall Capital.

Demonbreun Hill art
Photo by Eric England
The seller of the well-recognized retail real estate was Aurora PCS LLC, a New Jersey entity, which paid about $29 million in 2016.

The addresses of the 12-parcel 3.4-acre property are 112 and 118 16th Ave. S., 1529-1531-1533 McGavock St. and 1514, 1516 and 1522-1530 Demonbreun St. Some call the specific site on which the building sits “Demonbreun Hill.” The sale includes a stone American four-square building.

As noted, the just-purchased property offers large surface parking lots but does not include a building located at 1538 Demonbreun St. and housing a TailGate Brewing Company taproom.

Hall Capital, which offers both an Oklahoma City and a Nashville office, has its affiliate Hall Emery undertake development for the company.

Allie Hall, Hall Emery vice president of leasing and development, said the company anticipates the surface parking to be “poised for development in the near term, while letting the existing retail remain in place. We will be exploring those near-term development options over the next several months.”

Hall said tenants that could be affected by the near-term development operate on shorter-term leases and will not be inconvenienced by future construction work on the site.

Hall called the Demonbreun Hill property is “one of the last remaining ‘gateway sites’ in Midtown.”

“This strategic investment is representative of our belief in and commitment to the Midtown neighborhood and the incredible potential we see in the area,” she said.

Hall Capital represented itself in the transaction. The seller was represented by Roscoe High, with the Nashville office of Dallas-based CBRE.

FirstBank has provided Hall Capital three loans with a collective value of about $28 million, separate Metro documents note.

In 2013, Nashville-based Elmington Capital Group acquired the property for about $17.68 million and considered reinventing it with a multi-phased mixed-use development that could have included a grocery store (read here). ECG later sold to the New Jersey entity, which seemingly never made its plans for the site clear.

Hall said the company is not ready to note if a grocery store component might be included in any future reinvention of the site.

Hall Capital is familiar with the general Midtown area. For example, Spectrum|Emery Inc., from which Hall Emery was formed, developed the Music Row site home to mixed-use building 18th & Chet. Hall Capital sold in August that property for $78.5 million (read here). Of note, Hall Capital operates from 18th & Chet.

Similarly, Hall Emery will complete this month the development of a Music Row site with office building 17th & Grand (Above The Row). (Read more here.)

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