May Hosiery Nashville Leasing - LoopNet...square feet of Class A oice space at May Hosiery – a historic campus ... Vanderbilt, University of Washington, and Ohio State -- making

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The OfferingAJ Capital Partners is pleased to present for lease approximately 6 ,000

square feet of Class A office space at May Hosiery – a historic campus

of 6 irreplaceable buildings set on 4 acres in the rapidly expanding

neighborhood of Wedgewood Houston. Dating back to 1909, May Hosiery

is the adaptive re-use of the oldest sock mill in the South. The integration

of innovative workspaces, chef-driven restaurants, lifestyle retail, outdoor

public spaces and events offers a truly unique experience for users

seeking culture and character.

Addresses425, 427, 429, 431 Chestnut Street, 510 Houston Street and 1201 Brown Street

Site 4.05 Acres

No. of Buildings 6 Buildings

Office Availability

Total Available: 65,286 SF

431 Chestnut: 28,818 SF available divisible14,409 SF on Level 114,409 SF on Level 2

1201 Brown: 36,468 SF available divisible18,234 SF on Level 118,234 SF on Level 2

Total Interior Area 120,000 SF

Uses Office, Retail, Restaurant

Lease Type Office – FSG; Retail - NNN

Delivery June 2018

Office Parking Ratio 4/1,000 SF

24 40

440

65

65

GERMAN-TOWN

DOWNTOWN

CHARLOTTECORRIDOR

WEHO

WESTEND

GREENHILLS

MELROSEBERRY

HILL

THENATIONS

MUSICROW

12THSOUTH

MIDTOWN

8THAVE S

BELMONT

EDGEHILLVANDERBILTUNIVERSITY &

MEDICALCENTER

SYLVANHEIGHTS

SYLVANPARK

PIEDISTRICT

GULCH

MARATHONVILLAGE

ROLLINGMILLHILL

SOBRO

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Site Map

431

510429

427

425

1201

508B

PARKING

PARKING

PARKING

WE REINVENT SPACE& GIVE IT BACK MEANING

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AJ CAPITAL PARTNERS is a dynamic private equity investment and development organization with a portfolio of lifestyle hotel, luxury resort, and mixed-use assets across North America. The company’s core competency is the creation of distinctive, locally-inspired properties set in high growth and high culture environments with diverse demand generators. Its experienced team leverages their hospitality-centric approach to design, programming, and place-making to drive long-term value creation in timeless real estate. The company has specific expertise in the execution of major adaptive re-use projects with historical significance and ground-up development. This body of work includes: THE CHICAGO ATHLETIC ASSOCIATION; restoration of former private members club and architectural gem built in 1893 on Michigan Avenue. The property features 241 guest rooms, street-front retail, and a collection of destination dining, drinking, cafe and event spaces -- including the JamesBeard award-winning Cherry Circle Room and highly acclaimed penthouse restaurant Cindy’s, with sweeping views of the city. The project was designed by Roman + Williams in partnership with HPA Architects, and won the Urban Land Institutes 2016 Historic Preservation Award. THOMPSON NASHVILLE; ground-up development of iconic lifestyle hotel, located in one of the city’s most celebrated neighborhoods. The program includes a signature ground floor restaurant, boutique retail space, penthouse bar and patio with panoramic views, and 224 guest rooms and suites. The hotel was named to the Conde Nast Hot List and Traveler’s Choice Awards in 2017, and received the ULI Nashville People’s Choice Award.

SAN FRANCISCO ARMORY; transformation of 250,000 square foot historic military property built for the National Guard in 1912 into an innovation workplace. The property is located in The Mission, one of San Francisco’s most vibrant and storied neighborhoods. The project is set to deliver in 2019 following a $60 million renovation.

SOHO HOUSE CHICAGO; redevelopment of belt factory building in the heart of the West Loop into a 120,000 square foot private members club with 40 guest rooms, spa, boxing gym, rooftop pool, members lounge, and screening room. The project won the Urban Land Institute Catalytic Redevelopment Award in 2016. WEWORK CHICAGO WEST LOOP; rehab of 90,000 square foot former meat packing facility into creative office space occupied and managed by industry leading WeWork. The property is anchored between Fulton Market and Randolph Street, two thoroughfares that continue to attract the world’stop restaurateurs and businesses including the Chicago headquarters for neighboring Google. THE PONCHARTRAIN NEW ORLEANS; revival of historic hotel property built in 1825 in the Garden District of New Orleans, in celebration of its storied past. Notable former guests include Rita Hayworth, The Doors, and Tennessee Williams -- who stayed at the property while writing ‘A Streetcar Named Desire.’ The hotel features a fine dining restaurant, cafe, tavern, and rooftop bar which all pay homage to the property’s history. GRADUATE BERKELEY; conversion of 1928 Spanish Colonial property into 140-room hotel featuring Tartine Bakery and culinary program by Bill Chait. Graduate Hotels is a lifestyle brand platform created by AJ Capital Partners set in university-anchored locations. There are currently 10 operating assets in the portfolio with another 15 in development including Yale, Vanderbilt, University of Washington, and Ohio State -- making it the fastest growing hotel brand in the country.

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Project ArchitectDryden Architecture and Design

Dryden Architecture and Design is an award-winning architecture and interior design studio based in

Nashville, TN -- established in 2001. The firm is dedicated to making meaningful human places that

mindfully engage local resources and operate simultaneously as habitat and create a lasting memory.

They have completed a variety project types ranging from neighborhood master-plans, mixed-use

developments, adaptive reuse projects, private residences, boutique retail, restaurants and corporate

offices. The company’s focus has been on projects that have significantly impacted neighborhoods

and helped contribute to a healthy flora of the communities they work within at all levels.

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The HistoryFrom knickers to body stockings

May Hosiery is located on Chestnut Street just east of Fort Negley. There

are six buildings on the campus with approximately 120,000 square feet

of interior space. The landmark buildings are widely known as the May

Hosiery Mill, which employed generations of Nashville families and was the

oldest sock mill in the South.

The four acre property was acquired by Jacob May and his partners in

1908. May served as president and as chairman of the board until his death;

his sons Mortimer and Dan operated the mill after that. The company was

noted for the quality of its socks. The crew of Apollo 2, which landed on

the moon in 1969, wore socks made by the May Hosiery under contract to

NASA.

German-born Jacob May, 18 years old, came to America in 1879 in

steerage. He arrived in this country without speaking knowledge of the

language and with only seven dollars in his pocket. He began peddling dry

goods from a pack on his back. When he had earned enough he peddled

the New England area by horse and wagon. He later married and settled in

Laconia, New Hampshire, a hosiery mill town, where he opened a store. On

buying trips for the store, he sold his suppliers hosiery from the mill town.

An advertisement in a Boston newspaper brought Jacob May to Nashville.

He and a friend successfully bid a Tennessee prison labor contract - 50

men at approximately 50 cents a day. May moved his family and several

French-Canadian fixers (knitting machine repairmen) to Nashville and

started the Rock City Hosiery Mills in the old Church Street penitentiary in

1895. By 1908 May and his partners opened for business on Chestnut Street.

In the following years, May Mills counted as customers Marshall Field,

Montgomery Ward, Spiegel, Woolworth, Kress, Boy and Girl Scouts, as well

as Nashville wholesalers J.S. Reeves, Neely Harwell, W.S. Riddle, and Eskind

& Greenspan. In the 1930’s May was one of the first licensees of Walt Disney,

and the company was a prime contractor in mortar fuses during World War

Two.

During the years before the war, Jacob and Mortimer May made five trips

into Hitler’s Germany and managed to rescue more than 200 Jews before

the flow of visas was cut off. Mortimer became connected with the network

of underground movement in Europe and succeeded in saving some

intellectual Jews, which the Nazis were eager to liquidate. After the war,

Mortimer helped to establish a Jewish homeland in Israel.

Today May Hosiery is being reimagined into a hub of innovation and

commerce for a new generation, with a careful preservation of its history

and legacy in mind.

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431 Chestnut: Level 2

14,409 sq ft

16

431 Chestnut: Level 1

14,409 sq ft

431 Chestnut - Level 1 Rendering

431 Chestnut rendering

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1201 Brown Street: Level 2

18,234 sq ft

1201 Brown rendering

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1201 Brown Street: Level 1

18,234 sq ft

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Wedgewood-Houston NeighborhoodWedgewood-Houston is a rapidly expanding submarket in Nashville’s

urban core, located 1.2 miles south of the Central Business District; with

adjacency to 12 South, the Gulch, and SoBro. The district runs from 2nd

to 8th Avenue between Wedgewood Avenue and Houston/Chestnut

Streets. The area is diverse in both product and population, including

historic homes and warehouses, as well as repurposed and new mixed-

use developments. Approximately 1,000 new single family home and

townhouse permits have been issued over the last 3 years, during which

time the neighborhood has experienced significant absorption and rental

rate growth. There have been approximately 2,700 new apartment units

delivered from 2015-2017 along 8th Avenue South up through SoBro.

Historic manufacturing properties such as May Hosiery, many of which

are experiencing a renaissance with exciting adaptive reuse projects, pay

homage to the area’s industrial roots. Wedgewood-Houston has attracted

artists, musicians, and young professionals alike. Several major projects

are in planning or development, establishing the area as one of the most

actively expanding in the city – with a dynamic combination of revived

historic properties and new builds. The enclosed information provides

further granular detail on the various activities in the area.

Wedgewood Ave

Southgate Ave

Stew

art P

l

Mar

tin S

t

Allis

on P

l

Nea

l Ter

race

Carv

ell A

ve

Bransford Ave

Vine Hill Rd

Magnolia Rd

Moore Ave

Byru

m A

ve

Hamilton Ave

Merritt Ave

Pillo

w S

t

Humphreys St

Houston St

Mar

tin S

t

2nd Ave S

3rd Ave S

1st Ave S

Grey St

Hag

an S

t

Alloway St

E Argyle Ave

Edgehill Ave

Hill

side

Ave

10th

Ave

S

Summit Ave

Benton Ave

Benton Ave

Roycroft Pl

Wedgewood Ave

S Douglas Ave

Bradford Ave

Waldkirch AveHillview Heights

Bradford Ave

Melpark Dr

Craighead St

Craighead St

Craighead StNolensville Pike

Lewis St

9th

Ave

S

Archer St

11th

Ave

S

Glen Ave

Knowles Ave

Chestnut St

South St

Hawkins St

Tremont St

Oak St

3rd Ave S 1st Ave S

Cannon St

Char

les E

Dav

is Bl

vd

Trimble St

N Hill St

Bass St

Linden Ave

Ashwood Ave

14th

Ave

S

15th

Ave

S

South St

15th

Ave

S

40

17

18F

G

13 12

11 10

E2

DA

136

5789

14B

C

4

15

16

20

WEDGEWOOD-HOUSTON

Developments:A Six�� Merritt | The Finery

B Eighth Avenue Townhomes

C Wedgewood Park Apartments

D Pillow Street Cottages

E Merritt Mansion Redevelopment

F Herschel Greer Stadium

G Outpost Nashville

Restaurants & Attractions:1 Parson’s - May Hosiery

2 Tin Dog Tavern

3 Clawson’s Pub & Deli

4 Smokin Thighs

5 Gabby’s Burgers & Fries

6 Corsair Distillery

7 Dozen Bakery

8 Zeitgeist Gallery

9 David Lusk Gallery

10 Refinery Nashville Coworking Space

11 Houston Station | Hemingway Arcade

12 Seed Space

13 Vintage Millworks

14 Grimey’s/The Basement/

Frothy Monkey

15 Griffin Technology

16 Simply Mac

17 Adventure Science Center

18 Fort Negley

19 Bastion

20 Falcon | Flamingo

Distances:

� minutes to Interstate

� minutes to Downtown

� minutes to Nashville International Airport

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NashvilleAn Introduction

Declared “It City” by the New York Times in 2013, Nashville has since earned

a stream of accolades that includes 2016 recognition from the Brookings

Institute as a top 10 US city for job growth and prosperity. Nashville has been

recognized among the nation’s “Top 25 Art Destinations” by American

Style magazine and as the “#7 Best Place for Artists in the US” by Business

Week. Travel + Leisure reported that Nashville, known internationally as

“Music City,” beat contenders like Australia and Cuba in the Magazine’s 2015

poll of readers’ favorite vacation destinations.

Nightly music of every genre is performed at venues as different as “honky-

tonk” Tootsies World Famous Orchid Lounge, indie-centric bar, 12th and

Porter, and the elegant Schermerhorn Symphony Center. Critically

acclaimed ABC musical drama Nashville is filmed locally and is

broadcast to audiences worldwide. Taylor Swift was discovered at local

Bluebird Cafe and historic RCA Studio B sits in midtown Nashville, but show

business is not the city’s only defining characteristic. Over the last decade,

the area has experienced tremendous growth across the healthcare,

tourism, publishing, and technology industries. High-profile businesses from

across the country and the globe have moved to Nashville MSA, including

Nissan, Oreck, Bridgestone, Warner Music, Warby Parker, The Consulate-

General of Japan, and Lyft.

Nashville is the capital of Tennessee and serves as transportation,

business, and tourism hub for the region. Nashville’s diverse economic

market nestles in the state’s geographic center, comprises 10 counties with

a total population exceeding 1.7 million.

The City supports many innovative and aggressive local programs to

recruit workers to the region. The business environment is characterized by

a favorable geographic location, quality workforce, lower taxes and growth

opportunities enhanced by a diverse economy.

Many of Nashville’s most valuable workers come from the area’s vast

educational system, which includes 18 accredited four-year and

postgraduate institutions. These schools deliver 17,000 graduates to

the market each year, 60% of which choose to stay in the region after

graduation. In the Nashville MSA, 44.9% of adults at least 25 years and

older have one or more years of college education, and more than 45,000

people have graduate or professional degrees. Vanderbilt University

ranked the #15 university in the nation by the US News & World Report. MBA

Programs at Belmont and Lipscomb Universities were also named among

the nation’s best by Bloomberg. In addition to offering a cost of living below

the national average and a climate that remains mild year-round, Nashville

features dozens of municipal parks and golf courses. The city’s rich

landscape is spotted with natural attractions like Elm Hill Marina and Percy

Priest Lake.

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Market Overview

Sizable and Growing PopulationWith a population of 1.8 million in the Nashville MSA, Nashville is the largest

MSA in a five-state area. Only the Austin, Raleigh and Denver MSAs grew

faster than Nashville between 2010 and 2015.

Diverse Mix of IndustriesHealth care, corporate operations, advanced manufacturing, music and

entertainment, and supply chain management are the leading industries

that drive the Nashville economy. Some of the nation’s most notable

corporations are headquartered in Nashville, such as Nissan North

America, Bridgestone Americas, Dollar General, Hospital Corporation of

America and Gibson Guitar.

Favorable Geographic Location50% of the U.S. population (150 million people) lives within 650 miles of

Nashville, with 40 million people within 300 miles. 75% of U.S. markets are

within a two- hour flight.

Skilled Workforce The area is home to more than 118,000 students, with 17,000 graduating each

year and 10,000 of those graduates remaining in the Nashville area and

providing a strong pipeline of educated talent.

High Quality of LifeThe U.S. Chamber of Commerce’s Enterprising States report named

Tennessee a top state for low business taxes and regulations. Tennessee

also has the second lowest state and local tax burden per capita, and no

income tax on wages.

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Market fundamentalsEmployment Landscape

Snapshot:

• Nashville’s economy is diverse and safeguards it from some volatility. It is

in the top 15% of highest employment rates MSAs in the U.S.

• Over the past 12 months, 10 out of its 10 industry super-sectors experienced

healthy job growth.

• 2016 was the highest employment year in the city’s history.

Population Growth drives employment growth

Between 2010 and 2016, population grew from 1.7 million to 1.9 million.

Meanwhile, employment dropped 520 basis points.

1,550,000

1,600,000

1,650,000

1,700,000

1,750,000

1,800,000

1,850,000

1,900,000

MSA Population Unemployment rate

10.0%

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

2.9%Nashville unemployment

4.7%Tennessee unemployment

4.3%U.S. unemployment

3.5%Nashville 12-month

job growth

1.9%Tennessee 12-month

job growth

1.5%U.S. 12-month

job growth

2013 20172014 2015 2016

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Job growth (12-month change)

27

2%

19%

16%

16%12%

11%

9%

4%4%

7%

Information

Trade, Transportation & Utilities

Professional & Business Services

Educational & Health Services

Government

Leisure & Hospitality

Manufacturing

Financial Activities

Mining, Logging & Construction

Other Services

Employment by Industry National employment situation | Q2 2017

Mid-sized Southeastern markets overwhelmingly account for fastest-

growing metro areas (12-month % change)

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Office Market

Nashville’s growth is fueled by a booming tourist economy and business-

friendly local government. Efforts to increase density in the urban core

have been successful. In fact, Downtown vacancy is the lowest it’s been

in 15 years, and vacancy rates are 110 basis points lower in the urban core

compared to the suburbs. With many large corporations circling Nashville

as a potential home for their corporate headquarters –and countless

startups and entrepreneurial companies taking a closer look at the city, the

vibrancy of the urban submarkets will provide a dynamic, growth-centered

environment.

Snapshot Forecast

YTD net absorption 537,401 s.f. ▲

Under construction (new)

1,526,088 s.f. ▼

Total Vacancy 8.2% ▶

Average asking rent (gross) $25.77 s.f. ▲

Concessions Rising ▲250,000

1,750,000

2013 2014 2015 2016Y TD2017

Net absorptionDeliveries

Supply and demand (s.f.)

2013 2014 2015 2016 2017

Total vacancy

9.0% 9.3%

6.8%6.2%

8.2%

$0.00

$10.0 0

$20.0 0

$30.0 0

2013 2014 2015 2016 2017

Class AClass B

Average asking rents ($/s.f.)

For more information, contact

Bill AdairVice President615 928 [email protected]

Ashley AlbrightAssociate615 928 [email protected]

©2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof. TN_475297_12.17