Developers broke ground Wednesday on the newest Cool Springs office and hotel project.
Mallory Green, an office and hotel project in Franklin, will be at 3401-3601 Mallory Lane. Al. Neyer, a Cincinnati real estate developer, is building in partnership with New York Life, a speculative 175,000 square foot, five-story Class A office building, Also on the site Dakota Legacy Group, out of North Dakota, will separately develop two hotels on the 18-acre site.
The groundbreaking was Wednesday at 10:30 a.m. on the corner of Mallory Lane and Spring Creek Drive at 4075 Mallory Lane.
In partnership with New York Life, commercial real estate development company Al. Neyer announced in February the acquisition of 18 acres of land from Duke Realty for the project.
“This development is exactly what Nashville’s major office users are looking for,” Rob Gage, vice president of real estate development at Al. Neyer, said. “We aggressively pursued this parcel because of its picturesque setting and natural stream.”
While Neyer will start work on the office building, Dakota will start on the hotels. They are a Staybridge Suites and a Hyatt House.
Gage said tenants may be able to start moving in during the first quarter of 2018.
Plans could include two phases.
“We have room on the site to build a second building, and we could design it larger if the market demand is there,” Gage said.
In September when the project was announced, Gage said there was potential for more than 350,000 square feet of office space to be built.
“There is an obvious lack of supply of Class A Office Space in Cool Springs,” Gage said. “The Class A office market in Cool Springs is 99 percent occupied and what little supply is currently being built is already mostly leased.”
New York Life Insurance Company is joining Al. Neyer as an investment partner in the office development.
“It is exciting to be partnered with a Fortune 100 company like New York Life,” Gage said. “They researched the market like we have and believe it needs more space.”
“The Cool Springs area is one of the most sought-after places to work and live in Greater Nashville, making it difficult to find developable land,” Kevin M. Smith, managing director with New York Life Real Estate Investors, said. “Al. Neyer presented us with a compelling opportunity in a market where we want to invest. We are excited to be a part of creating a landmark destination in Williamson County.”
Gage said the site has great visibility from the interstate for an anchor tenant wanting signage. The development will incorporate four acres of protected green space within its footprint. The five-story office will feature floor-to-ceiling glass and an open floor plan, giving the project a spacious feeling and abundance of natural light.
The project also includes approximately 911 surface parking spaces and 85 reserved spaces beneath the office building. A future phase could include a second office building and parking garage to serve both office buildings and hotels.