After controversy, developer pursues much larger Franklin project
September 19, 2016
Nashville Business Journal
by Adam Sichko
An out-of-state developer is again attempting to make its debut in Middle Tennessee, after controversy and a lawsuit around its previous proposal caused the company to walk away and reset.
Developer Al. Neyer LLC, of Cincinnati, is now pursuing a project named Mallory Green on an 18-acre property in Franklin. Up to 350,000 square feet of office space would headline the proposed development at 3775 Mallory Lane.
Al. Neyer is pitching Mallory Green as a landing spot for a corporate headquarters, in a county known for that and one that is growing faster than anywhere in the state and adding jobs faster than any county in the nation. Today, demand for space is rising and supply has fallen to an all-time low, which is driving rent to record highs and causing several competing office projects to surface as well.
If successful, Mallory Green would be the restart Al. Neyer has been seeking since the spring, when the company nixed plans to turn Franklin’s A-Game Sportsplex into 175,000 square feet of office space. By comparison, Mallory Green could involve twice as much space, and it will likely cost as much or more to develop than the $48 million Sportsplex project.
Al. Neyer had been under contract to buy that property for $16 million, before two teams that used the building sued the building’s owners over terms of their existing leases. While those parties did reach a tentative settlement, Al. Neyer walked, saying there was still too much uncertainty causing discomfort for its investors and prospective tenants. To be clear, the club teams did not sue Al. Neyer.
In an email, Katy Crossen, a spokeswoman for Al. Neyer, said the first phase of the project would include 175,000 square feet of office space and two hotel sites. A potential second phase could bring a second office building, bumping the total to 350,000 square feet of space, but for now the developer is only pursuing approval from Franklin officials for the first phase.
The land on Jordan Road is one of the increasingly rare large untouched commercial sites still available in the Franklin/Cool Springs area. It’s currently owned by Indianapolis-based Duke Realty Corp. (NYSE: DRE), which has been steadily selling its office sites companywide as it shifts its focus to industrial real estate. Crossen said the company intends to complete its purchase of the land in the fourth quarter. Construction and grading work could then begin in early 2017.
As seen on our Williamson Watch map, the undeveloped site backs up to the 45-acre Northside at McEwen property, which the city of Franklin has zoned for a massive mixed-use development.