SunTrust building in downtown Nashville sold for $6 million

An equity fund managed by the investment arm of Eakin Partners LLC has bought the former SunTrust operations center and garage at Fourth Avenue North and Commerce Street for more than $6 million.
The purchase was the first from the EP Real Estate Fund II, whose launch over the summer with $36 million raised from local investors reflects how commercial real estate firms are positioning to seize investment opportunities created by the economic downturn.

"There are properties where the owner may face difficulty when it comes time for refinancing and may be looking for options to sell in addition to refinancing," said John Eakin, a partner in the fund.

The property, purchased from Atlanta-based SunTrust Bank, includes a building with 50,000 square feet of commercial office and retail space and an adjacent parking garage with 658 spaces.

Office tenants include Equinix, a data service provider.

SunTrust hasn't had operations in the building for several years.

The new owner plans to spend more than $1 million to renovate the garage and a similar amount to renovate office and retail space once tenants are secured for the remaining 30,000 square feet of vacant space, Eakin said.

With additional borrowings, EP Real Estate Fund II expects to have $100 million to invest. Eakin said the goal is to make up to eight investments in commercial properties in the next few years.

1,100 parking spaces

The fund is the second that Eakin Partners' investment arm has initiated.

Buildings in its first fund include Burton Hills I and II, Roundabout Plaza and SunTrust Plaza.

The latest purchase gives investment arm Eakin Properties control of more than 1,100 parking spaces near the center of downtown Nashville.

"As downtown becomes more successful and grows, these spaces will become more desirable," Eakin said.

Separately, Spectrum Properties, a partnership that includes former Crescent Resources executive Pat Emery, expects more troubled properties to emerge from the commercial real estate downturn in the second or third quarter of next year.

"We're aligning our partnership with investors to take advantage of the downturn that can possibly occur," Emery said.

Getahn Ward covers commercial real estate. He can be reached at 615-726-5968 or gward@tennessean.com.

Nashville home sales rise for first time in 3 yearsOvercoming Five Common Investing Mistakes Made by Property Owners & Managers