2221 ELLISTON PLACE, 114 & 118 LOUISE AVENUE...Credit Sesame (May 2016) Top City for Growth & Prosperity Brookings Institution (Feb. 2016) Top City Americans are Flocking To Forbes

Prime Midtown Nashville development site available for sale. The site is immediately adjacent to the medical corridor, Vanderbilt University and the West End Avenue submarket as well as the emerging Charlotte Avenue Corridor.

The site includes frontage on three major thoroughfares, Elliston Place, Hayes Street and Louise Avenue, which allows for maximum visibility & access.

Confidential Offering Memorandum

2221 ELLISTON PLACE, 114 & 118 LOUISE AVENUENASHVILLE, TN 37203

2 | Confidential Offering Memorandum

2221 Elliston Place

The OpportunityAvison Young is pleased to offer to qualified investors the opportunity to purchase an income producing multifamily property located in the West End / Midtown portion of Nashville / Davidson County.

The property offers a rare opportunity for investment in an income producing multifamily site with urban infill redevelopment potential in one of the fastest growing segments of Nashville.

The Property is located in Nashville’s very desirable West End submarket and is ideal for office, hotel, multi-family, medical office, or mixed use development.

Executive Summary

Offering at a Glance

Municipal Address: 2221 Elliston Place, 118 Louise Avenue & 114 Louise Avenue

Site Area: 0.662 Acres

Site SF: 28,837 SF

Submarket: West End

Existing Rental Units: 36 units (21 studios & 15 one bedrooms)

Zoning: ORI (Office Residential Intensive with - Urban Zoning Overlay)

Parcel/Tax ID: 092-15-0-168, 092-15-0-169, 092-15-0-170

*All leases have a 45 day unilateral landlord termination clause. Please request confidentiality agreement to obtain income information.

Avison Young | 2221 Elliston Place | 3

Investment HighlightsRare Nashville Opportunity

2221 Elliston Place

• Site maintains ORI zoning with an urban design overly, allowing for a variety of redevelopment uses.

• The property presents a unique infill redevelopment opportunity, while offering existing income streams.

• The sites enjoy direct interstate access to I-65, I-440, & I-40 via Charlotte Avenue, Church Street and West End Avenue / Broadway

• The neighborhood is ideal for hospitality, mixed-use, office, retail, medical office, entertainment and multifamily, while located in a landmark development area

• Extensive retail, restaurants & other service providers in the area

• Adjacent to Centennial Park - over 100 acres of greenspace

• Strategic physical link between Downtown, West End, Midtown, Charlotte, and Vanderbilt University

• In the heart of Nashville’s thriving medical district, including Saint Thomas Midtown Hospital, Centennial/HCA Hospital, Vanderbilt University, Vanderbilt Medical Center, and Vanderbilt Children’s Hospital

• Critical mass of residents and employees

• Very Limited amount of available land assemblage and critical mass

• Exceptional pre-leasing in recently opened multi-family, retail and office projects in the immediate area have been coupled with record investment numbers

• 2.4% office vacancy in the West End / Midtown submarket


2221 Elliston Place

“Historic and original businesses such as Exit/In,

Hurry Back and Elliston Place Soda Shop remain at the

center of this neighborhood, but plenty of new doors are

beckoning to be opened.”


Location AdvantagesSituated in between the CBD and West Nashville, Midtown / West End is quickly becoming the heart of development and activity in Nashville. West End offers extensive retail, restaurant, and other service providers in the area. Home to Vanderbilt University and Vanderbilt Medical Center, the neighborhood offers some of the highest quality, Class A office buildings and medical office in the Nashville market. Major tenants include: Caterpillar Financial, HCA, Ingram Barge, and Vanderbilt University/ Medical Center.

With very limited amount of land available, Midtown/ West End is a premier Nashville development area ideal for mixed-use, office, multi-family, hospitality, and retail.

Midtown / West End is the heart of Nashville’s thriving medical district, including Saint Thomas Midtown Hospital, Centennial/HCA Hospital, Vanderbilt Children’s Hospital and Vanderbilt University Medical Center.

CBD

ELLISTON PLACE

HILLSBORO VILLAGE

12 SOUTH

8TH AVE SOUTH

EAST NASHVILLE

MIDTOWN / WEST END

WEST NASHVILLE

DEMON-BREUN

MUSIC ROW

GULCH

GERMAN-TOWN

SOBRO


2221 Elliston Place

Ellisto

n Place

Church Street

22nd Avenue North1

4

2

37

5

6

West End Avenue

Saint Thomas Midtown Hospital

(Ascension)

Lowes Hotel

Caterpillar Financial

Centennial Sportsplex

TriStar Centennial Medical Center (HCA)

Centennial Park

Vanderbilt University, Vanderbilt Medical Center,

Vanderbilt Children’s Hospital

Hampton Inn

Charlotte Avenue

The site includes frontage on three major thoroughfares, Elliston Place, Hayes Street and Louise Avenue, which allows for maximum visibility & access.


65

7

4

2

3

1

The Dallas - 2110 Elliston Place

Size: 105 units; 7 stories

Delivered: 2014

Developer: LaSalle Investment Mgmt & Giarratana

Site Size: 0.68 acres

Edge Midtown - 301 22nd Ave North

Size: 146 units (micro units + 1& 2 bed); 7 stories

Delivered: 2015

Developer: Giarratana & LaSalle Investment Mgmt


Homewood Suites - 2400 West End Ave

Size: 222 keys; 8 stories

Delivered: 2013

Developer: RMR Investment Co - Robert Rogers


2305 - 2311 Elliston Place

Size:Site recently approved for 300 units; 18 stories; 13,000 SF retail via SP zoning

Owner: Grace Development

Site Size: 1.3 acres (2 parcels)

ParkCentral Apartments - 220 25th Ave North

Size: 200 units; 8 stories

Delivered: 2013

Developer: Giarratana & North American Properties


Elliston 23 - 2315 Elliston Place

Size:331 units; 7 stories; + 15,000 SF of retail (traded 4.25.14 at $95.1MM)

Delivered: 2013

Developer: Southern Land


Hyatt Place / Hyatt House - 121 21st Ave North

Size: 0.62 acres

Delivered: TBD

Zoning:SP zoning permitting up to 241,000-square-foot mixed-use (15-story, 230-room, full-service hotel with a parking garage and a restaurant)

RECENT DEVELOPMENT IN IMMEDIATE AREA


2221 Elliston Place

Demographics

1.8 MillionPopulation

615,000Households

$51,500Median Household Income

Market OverviewNashville Regional Market

Nashville’s vibrant and growing economy sets it apart from many other metropolitan areas and has exhibited a nearly decade-long trend of significant economic gains, making it the envy of other Southern cities and attracting new national investment into the region. In 2015, Nashville was named one of 2015’s Best-Performing Cities by The Milken Institute based on how well the metropolitan area creates and sustains jobs and economic growth. Most recently Forbes listed Nashville as the No. 4 position in its annual ranking of the best cities for jobs, ahead of Dallas and Austin, Texas. With a growing population of approximately 1.8 million people, Nashville is one of the fastest rising metropolitan areas in the country. As the state capital of Tennessee, the city ranks as the fourth largest city in the Southeast and is home to a well-diversified economy centered on the high-growth healthcare, education, government, music, and automotive industries. Anchored by a remarkable higher education infrastructure, a skilled labor force, its renowned quality of life, and low cost of living, Nashville is well-positioned to sustain this trend long into the future.

Nashville Highlights

3.1% 10 85 Unemployment Fortune 1,000

CompaniesPeople Move to Nashville per Day

among the best in the U.S. (April 2016)

36,000 new residents per year

headquartered in Nashville

50 %U.S. Population within 650 Miles

of Nashville

A Growing & Highly Diversified Economy

• Current unemployment rate of 3.1%, among the best in the U.S. (April 2016)

• 10 FORTUNE 1,000 companies are headquartered in Nashville

• Over 40 publicly traded companies are headquartered in Nashville

• With no major economic sector accounting for more than 20% of the employment base, Nashville is not reliant on any one area of business activity

• 5.9% overall vacancy rate for 1Q16, one of the lowest in the country


A Leading Relocation & Expansion Market

Nashville experienced a 3.4% increase in job growth in 2015 and a five-year growth exceeding 20%, according to Forbes. Although the city is a major healthcare industry hub, other sectors spurring economic growth include education, finance, publishing, automotive, technology, and distribution.

Nearly 110 companies have relocated or expanded in Nashville over the last 12 months bringing over 10,000 new jobs to the area.

Recent relocations or expansions include companies such as Advance Auto Parts, GAP Inc, Google Inc, Hankook Tire USA, HCA, Hot Topic, Lee Company, Lifeway Christian Resources, Lyft, Nissan North America, Quorum Health Corporation, Ramsey Solutions, Red Bull, Ryder Supply Chain Solution, TriWest Healthcare Alliance, Uber, and Vanderbilt University.

Decisions to relocate to Nashville not only highlight the market’s position as a corporate headquarters destination, but also show continued evidence of Nashville’s ideal combination of low costs, business friendly environment, quality of life, and talented labor force.

Accolades

# 4

# 5

# 5

# 5

# 6

Best Big City for Jobs Forbes (May 2016)

Best City for Young Workers Credit Sesame (May 2016)

Top City for Growth & Prosperity Brookings Institution (Feb. 2016)

Top City Americans are Flocking To Forbes (Oct. 2015)

Best City to Start a Business Thumbtack.com (Aug. 2015)

Nashville ranked No. 4 in Best Big Cities for Jobs 2016 by Forbes


2221 Elliston Place

Nashville Office MarketNashville’s vacancy rates continue to reach record lows. The office market posted a 4.6% vacancy rate at the close of third quarter, 50 basis points lower than second quarter and 170 basis points lower year-over-year. Class A vacancy continues to shrink to razor-thin margins in the white hot suburban submarkets like Cool Springs which boasted a 1.2% class A vacancy.

The declining vacancy rate coupled with the high demand for space has pushed rental rates to unprecedented levels. The direct asking rates for the overall market rose to $25.65 per square foot (psf ), a 23% increase from the previous year. Most notably Nashville’s overall class A asking rate broke the $30 psf threshold for the first time in the city’s history. Developments in the pipeline will help alleviate the unquenched demand for office to some extent, but rental rates for new developments will be considerably higher than existing inventory.

The Nashville market remains tight as interest in the positive business climate continues. Nashville’s crane-filled skyline is an indication that new construction is a dominant force in Nashville’s office market. Currently over 3.7 million square feet is under construction of which 75% is pre-leased. With no signs of a slowdown in demand expected in the immediate horizon in this active office market, record low vacancy rates and historically high rental rates will be posted throughout the Nashville market for the remainder of 2016.

NASHVILLE MARKET HIGHLIGHTS

• Incredible low vacancy over the past decade most recently reporting 4.6% (3Q2016)

• Active construction pipeline totaling 3.6 million square feet

• Strong rental rate growth with current class A asking rates posting $30.17/SF

• Barriers to ownership and tenant occupancy

• One of the most established and supply constrained markets in the Southeast and across the U.S.

• Significant pipeline of tenant demand anticipated to absorb new deliveries in near future

MARKET INVENTORY VACANCY 1Q16 NET ABSORPTION

1Q16 DELIVERIES

UNDER CONSTRUCTION

AVERAGE ASKING RATES

Airport North 4,539,001 5.3% 119,747 0 0 $20.58

Airport South 5,814,845 5.8% 113,638 0 240,000 $18.83

Brentwood 6,322,375 1.5% 238,918 203,000 483,018 $28.03

Cool Springs 7,983,513 1.3% 52,542 80,000 779,833 $29.80

Downtown 9,953,578 9.6% 60,452 0 2,033,000 $28.66

Green Hills/Music Row 3,562,215 3.7% 54,896 96,153 45,193 $29.40

MetroCenter 2,330,435 6.4% 29,741 0 0 18.86

North 2,978,364 6.4% 36,310 0 40,000 $17.03

West End 6,758,734 1.8% 66,841 0 0 $28.98

Totals 50,243,060 4.6% 773,085 379,153 3,621,044 $25.65


Company Location # of Local Employees

Vanderbilt University Nashville 22,105

Nissan North America Franklin 10,050

HCA Nashville 7,000

Saint Thomas Health Nashville 7,000

Community Health Systems Franklin 3,092

Cracker Barrel Lebanon 3,012

Shoney’s Nashville 3,000

National Healthcare Corp. Murfreesboro 2,000

Dollar General Corp. Goodlettsville 2,000

Ingram Content Group LaVergne 2,000

A .O. Smith Corp. Ashland City 1,900

Bridgestone Americas Nashville 1,855

Life Way Christian Resources Nashville 1, 281

Asurion Nashville 1,250

Genesco Nashville 1,245

CGS Administrators Nashville 1,100

OHL Brentwood 1,044

Emdeon Nashville 950

Comdata Brentwood 900

Tractor Supply Company Brentwood 900

MedSolutions Franklin 625

Largest Corporate Offices in the Nashville Region

High Quality of Life The cost-of-living index in Nashville is 10 percent below the U.S. national average, and per capita income is 14 percent higher than the national average, resulting in more disposable income for education and leisure activities. Also, Nashville routinely places at the top of livability rankings.

Diverse Mix of Industries Health care, corporate operations, advanced manufacturing, music and entertainment, and supply chain management are the leading industries that drive the Nashville economy.


2221 Elliston Place


Currently Nashville has over 5.4 million sf of office, industrial and retail product under construction, with record breaking levels of activity across all product lines. Multifamily continues to break record development records as well with over 10,000 units under construction in Nashville.

Office

Major office projects that recently broke ground include 222 2nd Ave South, a 361,000 sf Class A office building in Downtown, as well as suburban projects Two Franklin Park and 4000 Hillsboro, a mixed use office project in Nashville’s Green Hills area. These developments will bring over 700,000 sf of new office space to Nashville.

Industrial Industrial projects underway include both build-to-suit (BTS) and speculative development. BTS is estimated to bring over 600,000 sf to Nashville’s industrial inventory with The Wonderful Group’s manufacturing center in Lebanon being the largest at 500,000 sf and expected to deliver 4Q2016.

Retail

Local and national retail tenants continue to show steady interest in Nashville. As significant office and multi-family development projects are delivered in the Gulch, CBD, Green Hills and West End, retailers are eager to take advantage of the new retail inventory that is available on the ground floor. Major retail development expected to deliver in 2016 includes a 150,000 sf extension to the Green Hills Mall and Aertson Midtown, a mixed use development which includes 33,000 sf of retail space.

Multifamily As Nashville continues to grow exponentially, multifamily development has followed suit with a 188% growth in construction starts from 2014 to 2015. Hot spots for multifamily development are centered around the Gulch, Germantown, Green Hills and West End.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2014 2015 2016 YTD

Office SF Industrial SF Retail SF

2,195

8,521

10,048

2014 2015 2016 YTD

Nashville SF Under Construction Nashville Multifamily Units Under Construction

Nashville Construction

Melissa LilesVice [email protected]

Billy Lyell, [email protected]

Contact InformationAvison Young700 12th Avenue SouthSuite 302Nashville, Tennessee 37203615.727.7400

Documents

2221 ELLISTON PLACE, 114 & 118 LOUISE AVENUE...Credit Sesame (May 2016) Top City for Growth & Prosperity Brookings Institution (Feb. 2016) Top City Americans are Flocking To Forbes