VRE Office Properties’ 1.1 MSF Office Buy is Year’s Largest
- Apr 30, 2015
Chicago-based VRE Office Properties has finalized the purchase of 1.1 million square feet of Class A office and flex space, Colliers International announced. The purchase was part of a $1.12 billion office portfolio sale spanning four regions, including Nashville, St. Louis, south Florida and Raleigh, N.C. The seller was Duke Realty Corporation. VRE’s purchase is the largest office transaction in the Nashville market this year.
The 14-building portfolio is comprised of properties located in Brentwood and Cool Springs, some of Nashville’s most dynamic office submarkets, sporting vacancies below the five percent mark. The portfolio boasts a 98 percent occupancy rate. Tenants include Peak 10, Paymaxx, Mars Percare’s U.S. headquarters, UnitedHealthcare, Hospice Compassus and Jack Henry & Associates.
The portfolio includes four-building Aspen Corporate Center, the four-building Aspen Grove Flex Complex, the two-building Aspen Grove Office Center and the four-building Creekside Crossing.
Colliers International has been named exclusive leasing agent for the newly-acquired Nashville portfolio. Chris Grear, Colliers Nashville partner and office division chief will lead VRE Office Properties’ leasing team along with Colliers Vice President Charlotte Ford.
The addition of the 1.1 million-square-foot portfolio is VRE’s second Tennessee investment, following the acquisition of the 284,000–square-foot Palmer Plaza earlier this year. VRE’s new holdings place the Chicago-based investment group in the top five office property owners in the Nashville region. Moreover, VRE is looking to further expand its Nashville holdings.
“We would like to double in size if opportunities become available,” said Casey Wold of VRE Office Properties.
Duke Realty’s $1.12 billion sale is part of the corporation’s portfolio restructuring efforts. In January, Duke announced plans to divest itself of all North American office holdings in a bid to focus on industrial and medical office products.
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Images courtesy of Colliers International