Company adds to office portfolio with five structures in Music Row, 21st Avenue areas

Nashville-based real estate investment and development company Elmington Capital Group announced Wednesday afternoon the purchase of five office buildings along Music Row and 21st Avenue for a collective $21.95 million.

The announcement follows Elmington’s announcement earlier today that it had paid $20.3 million for apartment complex The Park at Hillside in Edgehill (read more here).

Formerly owned by deceased local businessman and Republican Party stalwart Ted Welch, the buildings have addresses 1114 17th Ave S., 1222 16th Ave S., 2416 21st Ave S. (pictured), 2424 21st Ave S. and 2409 21st Ave S.

The five-building portfolio comprises approximately 115,000 square feet, which brings Elmington’s Nashville office portfolio to 307,360 square feet. Elmington also owns CitySpace, 21st & Ashwood and a stake in downtown’s St. Cloud Corner.

Elmington plans to invest $1.6 million in exterior and interior renovations, which will be primarily spent on the property located at 2416 21st Ave. This investment will be similar to the $1.55 million in renovations Elmington completed on the interior common areas of CitySpace in downtown Nashville.

The portfolio’s occupancy was 54 percent at the time of acquisition with an average rental rate of $21.42. Since the properties have come under contract, Elmington said it has received “significant leasing interest” for the available 53,000 square feet. After renovations, rental rates will be set at current market rates of $25 to $30 per square foot, the company said.

“We’ve been looking to expand our footprint in the 21st Ave./Music Row corridor,” Ryan Seibels, Elmington SVP of commercial acquisitions, said in the release. “This is an attractive area for employers, and we’re excited to bring new life to these office buildings with upcoming renovations.”

With the purchase, Elmington owns 12 properties valued in excess of $100 million within the I-440 loop of Nashville, with eight of the buildings located in the 21st Ave./Music Row corridor.