A Nashville-based developer/investor and its New York partner have paid $2.5 million for a 0.58-acre site in the area south of Broadway where they plan an eight-story self storage project.
Natchez Group and Atlas Real Estate Partners expect to start building the 150,000-square-foot SoBro Storage facility at 825 Third Ave. S. later this year.
"We believe the site’s unique physical attributes make it a perfect fit for self storage, as it has excellent visibility within a rapidly growing neighborhood," said Taylor Preston, managing partner of Nashville-based Natchez Group.
Separately, the joint venture partners said that they've closed on a $7.2 million construction loan from FirstBank. That money will help to fund construction to start within the next month on a new 100,000-square-foot, self storage project at 500 Downs Blvd. in Franklin with completion targeted by next summer or fall.
The Natchez Group-Atlas Real Estate joint venture plan to continue targeting both new development and acquisition of more self storage facilities across the metro Nashville area, officials said.
"The self storage business has been the best performing real estate asset class over the past 20 years, and we view self storage as an attractive asset class due to inherent fundamentals such as its recession resiliency, strong rent growth, expense control, and growing institutional investor appetite,” said Arvind Chary, managing principal with New York-based Atlas.
The design and build team that the Natchez Group-Atlas Real Estate joint venture has assembled to build their planned self storage facilities here include Stinard Architecture, Smith Gee Studio and JMWilliams Contractors.
Among other self-storage projects coming to the SoBro area, developers Case Van Lare and Richard Byrd of Dallas-based Provident Realty Advisors plan a 150,000-square-foot facility for six-tenths of an acre at 514 and 522 Eighth Ave. S.
A separate partnership that includes Taylor's Natchez Group also plans a mixed-use building with five stories of self storage space above ground-level retail for 0.64 acres at the corner of Third and Monroe in Germantown.