Semi Annual Report - July 2012

The Chattanooga office market has been the most active commercial real estate sector for the first two quarters of 2012. This is specifically the case for the downtown sub-market. Liberty Tower, LLC bought the 192,000 square feet Chestnut Tower from a partnership controlled by Franklin Haney in 2011 and renamed the building Liberty Tower. The property is currently undergoing an extensive $20 million renovation and has attracted two quality tenants, Chambliss Bahner & Stophel which is leasing four floors and the accounting firm of Lattimore Black Morgan and Cain, PC. Both of these companies are moving out of the Tallan Building by year end 2012. The two relocations will cause a scramble to back fill the vacant space. Further, Propex Inc. leased 40,000 square feet in Warehouse Row and is moving from the suburban market to downtown. These three lease transactions total slightly over 120,000 square feet of class “A” office space. Also, Blue Cross Blue Shield of Tennessee sold its 426 space Broad Street Hub Garage to Sixth Street Limited Partners.

The Industrial Market is still feeling positive vibes from the VW plant and their suppliers are continuing to lease space in warehouses in close proximity to the plant. Most of the leases are short term, one to two year leases. A total over 1,500 ancillary jobs and slightly over 850,000 square feet of warehouse leases can be directly linked to VW’s seventeen suppliers. However, there are three warehouse properties comprising over 1.2 million square feet that are currently on the market. The most recent news is the Bi-Lo warehouses in the Shallowford Road sub-market were recently purchased and are currently being renovated. Competition will be high for the users over 100,000 square feet.

Over all the commercial real estate market is experiencing much better growth and activity in Chattanooga than in most other regional markets. Leasing is steady in all sectors which is great news for property owners. Should you have any interest in talking with NAI Charter about your commercial real estate, please do not hesitate to call.

Sincerely,

David F. DeVaney, SIOR, CCIM

President of NAI Charter Real Estate Corporation

NAI Completes BlueCross BlueShield of Tennessee Assignment By Selling Four Downtown Properties

BlueCross BlueShield of Tennessee moved into its new 950,000 SF headquarters vacating over 360,000 SF of corporate owned downtown office buildings. BCBST hired David DeVaney, SIOR, CCIM of NAI Charter for the disposition of these properties.

Property: “Hub Building” - 3 story - 33,000 SF
Located: Broad and 7th
Purchaser: Berry & Hunt

Property: “Gold Building” - 10 Story - 177,022 SF
Located: 801 Pine Street
Purchaser: DeFoor Brothers Development

Property: Historic Miller Brothers Building - 4 story - 132,673 SF
Located: 629 Market Street
Purchaser: Mesa Associates, LLC

Property: “Hub Garage” - 426 Parking Spaces - 18,000 SF
Located: 631 Broad Street
Purchaser: 6th Street Limited Partners

Office News Overview

415 & 417 Georgia Avenue

FOR SALE
$795,000 for both properties
3,539 SF & 4,688 SF
Located Downtown near the courthouse

629 Market Street - Miller Building

FOR LEASE
Rate: $18.00 PSF
1st Floor: 1,905 SF - 14,925 SF
4th Floor: 14,808 SF - 35,844 SF

4115 S Access Road

FOR SALE
Price - $1,250,000
Building Size - 14,000 SF
Located off Hwy 153

Office Leases & Sales

2030 Hamilton Place Blvd - CBL Center I

Landlord - CBL & Associates Properties
Tenant - Comcast
Leased - 5,170 SF
Represented by David DeVaney, SIOR, CCIM of NAI Charter

1210 Premier Drive - Pointe Corporate Center

Landlord - Pointe Centre Partners, GP
Tenant - TEK Systems
Leased - 2,457 SF
Tenant Represented by J. Bryan Rudisill, SIOR, CCIM of NAI Charter

Industrial News Overview

3916 Volunteer Drive

FOR SALE
Price: $1,795,000
Building Size: 16,464 SF
Located off Bonny Oaks and Hwy 153

99 Textile Lane

FOR SALE
Price: $3,045,000
40 Acres and 100,000 SF Building
Located off I-24 and Cummings Hwy

232 Industrial Drive

FOR SALE
Price - $1,099,000
Building Size - 92,100 SF
Located in Decatur, TN

Industrial Leases & Sales

510 Tram Trail - Dunlap, TN

Seller - Tecumseh
Purchaser - Premier Properties
200,000 SF Industrial Bldg / 40.6 Acres
Represented by J. Bryan Rudisill, SIOR, CCIM of NAI Charter

1810 Chestnut Street - Former Southern Fabricators

Seller - Regions Bank
Purchaser - Stadium Apts, LLC
33,836 SF Industrial Bldg/ 2.24 Acres
Represented by Chad & Parker Wamack of NAI Charter

Retail News Overview

6219 Lee Hwy

FOR LEASE
Price: $11.00 NNN
Suite Sizes: 1,240 SF - 5,000 SF
Located off Hwy 153 in R&R Plaza

7727 Lee Hwy

FOR SALE
Price: $347,000
Building Size: 3,350 SF Building
Located off Bonny Oaks at Lee Hwy

6012 & 6016 Shallowford Road

FOR LEASE
Rate: $12.00 NNN
Suite Sizes: 2,409 SF - 12,006 SF
Located off Shallowford Rd at Hwy 153

Retail Leases & Sales

Old BMW Dealership - Brainerd Road

Seller - Sonic Automotive
Purchaser - Chattanooga Airport
32,138 SF Industrial Bldg / 4 Acres
Represented by J. Bryan Rudisill, SIOR, CCIM of NAI Charter

6425 Lee Hwy - Former Circuit City

Seller - DZD, LLC
Purchaser - International Congress of Churches & Ministers
36,500 SF Industrial Bldg / 3 Acres
Represented by David DeVaney, SIOR, CCIM of NAI Charter

Land News Overview

6001 Lee Hwy

FOR SALE
Price: $2,750,000
Land Size: 23+ Acres
Former Brainerd Lumber Yard

4521 Bonny Oaks

FOR SALE
Price: $1,600,000
4.03 Acres
Located off Hwy 153

7148 Lee Hwy

FOR SALE
Price - $1,430,000
9.79 Acres
Located next to Chattanooga State Building

Land Leases & Sales

Dayton Pike

Seller - Marilala Millar
Purchaser - Cecil Smith
30 Acres
Represented by J. Bryan Rudisill, SIOR, CCIM of NAI Charter

Chandler Place @ 34th Street

Seller - Chattanooga Housing Authority
Purchaser - Alton Place 2009, LP
12.6 Acres
Represented by James Fitzpatrick, SIOR, MAI of NAI Charter