Strategic Market Analysis - LoopNet

SOUTHERN GROUND

STUDIONashville Recording Studio

114-116 17th Ave. S Nashville, TN 37203ACT ID: ZAB0480216

Strategic Market Analysis

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NON-ENDORSMENT & DISCLAIMER NOTICE

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it

from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing

Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject

property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and

makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the

size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and

Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or

intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be

reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any

investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All

potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real

Estate Investment Services, Inc. © 2019 Marcus & Millichap. All rights reserved.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any

corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its

affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee

information about this listing to prospective customers.

Offices Throughout the U.S. and Canada | www.marcusmillichap.com

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of theinformation. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions,assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real EstateInvestment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2020 Marcus & Millichap Activity ID ZAB0480216

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they

may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to

perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties

and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants,

contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting

matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and,

given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-

making.)

TABLE OF CONTENTS

01 | Financial Overview

02 | Property Overview

03 | Market Overview

FINANCIAL

OVERVIEW

This information has been secured from sources we believe to believable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Referencesto square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used here in are forexample purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap RealEstate Investment Services,Inc.©2020 Marcus & Millichap ACT ID ZAB0480216

This information has been secured from sources we believe to believable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age areapproximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used here in are for example purposes only and do not represent the current or futureperformance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services,Inc.©2020 Marcus & Millichap ACT ID ZAB0480216

PROPERTY DETAILS

FINANCIAL OVERVIEW

PRICE: $6,825,000 | PRICE/SF $750

PROPERTY

OVERVIEW




MARKET

OVERVIEW


INVESTMENT OVERVIEW

SOUTHERN GROUND NASHVILLEMarcus & Millichap is pleased to present this trophy asset located in the heart of Nashville’s historic Music Row district. There are over 20 commercial recording studios in this area of the city.

Initially built by Cumberland Presbyterian Church, this beautiful brick building was purchased by Fred Foster, the founder of Monument Records, in 1968. In 2012, Zac Brown renovated the building and turned it into the beautiful, high-end recording studio that inspires musicians and songwriters today.

EXCELLENT LOCATION AND DEMOGRAPHICS ALONG MUSIC ROW

The Southern Ground Studio is located in the heart of the highly popular Music Row district. Music Row is one of the nation’s largest music destinations for recording, songwriting, publishing, marketing and management. The studio is located right between Broadway and Demonbreun; these two streets see 40,000+ and 21,000 vehicles a day, respectively. Nashville is growing rapidly, and Music Row is no exception. Residency within one mile of the property has increased 149 percent since 2010 and the 2025 projection calls for additional 11 percent growth. Currently the population within one mile of the property is 21,626, 125,256 within three miles and 233,690 within five miles. The total growth of Nashville by population in 2019 was 2 percent.

NASHVILLE, TENNESSEE ECONOMIC AND EDUCATIONAL DRIVERS

Nashville is growing fast. Last year over 82 people were moving to Nashville everyday. This growth is driven by the migration of businesses to Nashville. Amazon, Alliance Bernstein, Google, Facebook and Smile Direct Club are among some of the companies bringing thousands of new jobs to Nashville, but not to be forgotten are the companies that are headquartered in Music City such as Bridgestone Americas, Nissan North America, HCA Healthcare Inc., Tractor Supply and numerous music industry companies

Construction and development in Nashville is booming; as of May 2020 there were 34 cranes active in Nashville. That’s nearly as many cranes as Seattle and more than Chicago, Denver, Portland and Washington, D.C., according to the firm Rider Levett Bucknall. There are over 150 projects in the pipeline with 64 of those in excess of $100M each.

Within a mile of the studio there are more than 3,700 hotel rooms proposed or under construction across 12 projects, 2,200 apartments across six projects and 1.7 million square feet of office space across eight projects.

This property is located on irreplaceable real estate in one of the top growth markets in the entire United States. Whether buying this property for a long-term hold, redevelopment or current studio use, this is a true trophy asset opportunity.


POPULATION INCOME HOUSEHOLDS

Nashville, TN

L O C AT I O N O V E R V I E W | D E M O G R A P H I C S

1-MILE 3-MILES 5-MILES

23,626 130,306 240,859

2025 Projection


21,626 125,256 233,690

2020 Population


$91,260 $88,025 $89,655

Average


$65,000 $58,698 $59,839

Median


11,499 58,707 103,416

2025 Projection


10,351 55,851 99,782

2020 Households


DEMONBREUNSTREET

430 Units

21-Story 550,000 SF AA Office Tower

34-Story 196-Unit High End Condos

237 Luxury Room Conrad Hotel

1.5 Acre OpenAir Plaza

COST: $540+ M

Asurion HQCOST: $285M

24-Story 365,000 SF

COST: $141M

Amazon Tower 1566,000 SF

COST: $175M

15 Acre Development1,000 Residential Units1,100 Hotel Rooms3.5M SFCOST: $1B

25-Story Luxury Apartment350+ Units

27-Story440 Unit

DevelopmentCOST: $100+M

2.1 Million SF Convention Center

240 RoomsCOST: $110M

American Society of Composers, Authors and

Publishers (ASCAP)

420 Luxury UnitsCOST: $83M

330 Acre Campus15,000 Students

75 Acre Campus8,200 Students


Six-Story Luxury Apartment

190+ Units

Centennial Park

Saint Thomas Hospital Midtown

Finished in Q2 2020Cost: $110M

19th and Broadway347 Apartments200 Hotel Rooms

Cost: $124M

27-Story440 Unit


430 Units

Six-Story Luxury

Apartment190+ Units

27-Story440 Unit



Finished in Q2 2020Cost: $110M

SOUTHERN GROUND

STUDIO

ACT ID ZAB0480216

Documents

Strategic Market Analysis - LoopNet