Update 4/20/17 – The Natchez Group has received a permit for its eight-story self-storage project in the SoBro neighborhood of Nashville, Tenn. Valued at $28,000, the permit allows the company to demolish a small building on the site, according to the source.
Harris Construction Co. Inc. will build the new storage project. Designed by Smith Gee Studio of Nashville, Tenn., it will be the largest self-storage site in the city, the source reported.
9/6/16 – A joint venture between The Natchez Group and Atlas Real Estate Partners, a New York-based private investment firm, has closed on the Third Avenue self-storage property in SoBro for $2.5 million. Construction on the 150,000-square-foot facility is expected to begin later this year. The two companies also closed on a $7.2 million construction loan for a separate self-storage project in Franklin, Tenn., according to the source.
“We’re excited about the [SoBro] acquisition and believe the site’s unique physical attributes make it a perfect fit for self-storage, as it has excellent visibility within a rapidly growing neighborhood,” Preston said in a press release.
The Franklin facility will comprise 100,000 square feet at 500 Downs Blvd. The joint venture purchased the land in April and will begin construction in the next 30 days, the release stated. The project is expected to be complete by fall 2017. The loan was secured through Nashville-based FirstBank.
“The self-storage business has been the best performing real estate asset class over the past 20 years, and we view self-storage as an attractive asset class due to inherent fundamentals such as its recession resiliency, strong rent growth, expense control and growing institutional investor appetite,” said Arvind Chary, managing principal at Atlas.
The deals are the first for the joint venture, which intends to pursue self-storage acquisition and development opportunities in the Nashville metropolitan area, according to the release. The companies expect to “grow the platform substantially in 2017,” officials said.
Atlas is run by Chary and fellow managing principal Alex Foster. The company has closed on 40 acquisitions in the past six years, representing more than $650 million in value. The firm specializes in office, medical, multi-family, retail, self-storage and student-housing assets.
The Natchez Group focuses on self-storage development and investments in Central Tennessee and the Southeast. In the past four years, the company has been involved in more than 500,000 square feet of self-storage projects, according to the release.
Rendering of self-storage facility planned for Franklin, Tenn., by Atlas Real Estate Partners and The Natchez Group.
5/5/16 – Self-storage developer The Natchez Group intends to build an eight-story facility in the SoBro neighborhood of Nashville, Tenn. Principal Taylor Preston has the 0.58-acre property at 825 Third Ave. S. under contract but will need approval for a downtown zoning exception to move forward, according to the source. The self-storage facility will have up to 1,000 units and two small offices, with the ground-floor office space tabbed at 1,710 gross square feet.
The Nashville Downtown Code Design Review Committee is scheduled to review the zoning-exception request this week. The portion of the site along Lafayette Street has a requirement for “active use,” but project architect Hunter Gee has submitted a letter to the committee indicating the requirement will be difficult to meet based on location and topography, the source reported.
Under the downtown code, offices, restaurants and retail storefronts are required to create activity for pedestrians along primary streets like Lafayette. "We are providing active uses elsewhere on the Third and Lindsley frontage, but Lafayette presents numerous challenges for a viable active use," Gee wrote.
Both office spaces have been placed on the Third Avenue South side of the property, according to the source. The site is currently occupied by engineering consultant Kurzynske & Associates. The property is owned by Teresa L. Kurzynske, wife of the firm’s principal, Mark Kurzynske.
Preston is involved in several self-storage developments in Nashville, including partnerships planning new developments in Berry Hill and Franklin, Tenn., the source reported.