New Jersey Fund Has Demonbreun Strip Under Contract
The 3.38 acres Elmington Capital Group is selling includes location of Tin Roof, Just Love Coffee and Off Broadway Shoes.
The transaction would be the first in Nashville for Castle Rock Equity Group, which acquires large multi-family residential and commercial properties nationwide.
Castle Rock plans to develop the property in three phases, beginning with a parking deck with apartments on top.
Tenants of 3.38-acre site include Tin Roof, Just Love Coffee and First Citizens Bank, with the overall property also including the location of Off Broadway Shoes.
The retail strip on Demonbreun Street and overall 3.38-acre property that was once eyed for a multi-phased, mixed-use redevelopment project could soon have a new owner.
Florham Park, N.J.-based privately held real estate fund Castle Rock Equity Group has a contract to buy the property from Nashville-based Elmington Capital Group.
The deal, which is on track to close in mid-February, would mark the latest ownership change for the site, which Elmington bought for $17.67 million more than two years ago. The commercial real estate investor and developer has specific plan, mixed-use zoning for the Demonbreun Hill project, which was to include a grocery store and 200-space parking garage in the first phase along with residential units, hotel rooms, retail, office and parking space.
Castle Rock’s transaction with Elmington would be the first acquisition in Nashville for that fund, which acquires large multi-family residential and commercial properties nationwide.
Jacob Berger, chairman and président of Montreal-based real estate firm Hampton Properties Inc., said Castle Rock has hired his firm to manage the Nashville property that’s along Demonbreun, 16th Avenue South and McGavock Street in Midtown.
“We look forward as a newcomer to working closely with local developers, local vendors, working with all of the local folks,” Berger said, adding he will also be part of the new ownership of the Demonbreun property. “I’ll be teaming up all kind of local people.”
Berger said Castle Rock plans to develop the property in three phases, beginning with a parking deck with apartments on top in the first phase, with hotels also planned.
“We’re going to leave the shops for five to eight years,” he said.
Berger was referring to the Demonbreun retail strip with restaurants, bars and offices adjacent to the Music Row Roundabout. Tenants include Tin Roof, Just Love Coffee and First Citizens Bank with the overall property also including the location of Off Broadway Shoes.
Elmington officials declined to comment. The company, which under the approved zoning was required to include a grocery store that was once rumored to be Publix in the first phase of the Demonbreun Hill project, purchased the 3.38 acres from a subsidiary of Houston-based The Lionstone Group.