News Release
AMSTAR GROUP ACQUIRES 31-STORY, CLASS A OFFICE BUILDING IN DOWNTOWN NASHVILLE
Denver-Based Real Private Equity Firm Acquires Fifth Third Center, a 31-Story, Class “A” Trophy Office Building in Resurgent Downtown Nashville
NASHVILLE, TN (December 15, 2006) – Amstar Group announced today the acquisition of Fifth Third Center, a 31-story, 490,000-square-foot Class A office building in the central business district of Nashville, Tennessee. Amstar, a Denver-based real estate private equity firm, purchased the asset from a joint venture between investors advised by Prudential Real Estate Investors (PREI®) and a group of local investors including Tom Smith, Nelson Crowe and Rob Lowe.
Located at 424 Church Street, Fifth Third Center is well located in Nashville’s downtown. Notably, during the past year Nashville has attracted 12 major corporate relocations, two of which have occurred in the CBD. As the Nashville CBD continues to improve, the building should see increased leasing activity.
Fifth Third represents Amstar’s second real estate transaction in Nashville during the last two years. In December 2005, Amstar, in partnership with the Southern Land Company, acquired 90 acres at McEwen Drive and Mallory Lane within the Cool Springs submarket.
“The greater Nashville area is experiencing strong economic growth. With its high quality of life and pro-business demeanor we believe that Nashville will continue to strengthen in the near term,” said Amstar Group Vice President Rob Toomey.
Nashville’s CBD is experiencing revitalization unmatched by any Southeastern city, Della Wegman, Amstar Group Vice President added. “We were surprised to learn how much public and private investment has been made during the past several years. We saw this acquisition as an opportunity to acquire and reposition an underperforming trophy asset that was exceptionally well located within a resurgent CBD.”
Amstar expects to upgrade the facility to solidify the building’s position among the most desirable office towers in Nashville. Improvements will include renovating the tower’s lobby, elevators, common areas, and overall curb appeal. The building, originally The Financial Center, changed names during August to reflect the presence of its anchor tenant, Fifth Third Bank.
Amstar has hired Terry Smith, Drew Robinson, and Buck Blair of Nashville Commercial/Cushman & Wakefield Alliance for marketing and leasing and Jones Lang LaSalle for property management.
Tom Powers, in Colliers International’s Investment Services Group and Rob Lowe, a Principal of Colliers Turley Martin Tucker represented PREI. Amstar Group represented itself.
Established in 1987, Amstar Group is a leading real estate private equity firm headquartered in Denver. The company invests nationally in value-add acquisition and development opportunities, often with local partners. In its history Amstar has acquired, developed and sold more than $2.2 billion of real estate. Amstar’s current $1.3 billion portfolio includes a mix of office, multifamily and hospitality holdings in addition to a development pipeline of distribution, office, industrial, multifamily, mixed-use, and retail projects. The firms acquisition and disposition volume in 2006 exceeded $750 million. For more information about Amstar Group visit the company’s website at www.amstargroup.com.