A development with deep ties to history sold in a record-breaking transaction in Nashville, Tennessee, solidifying the city’s prominent role as an industrial hub.
The two-building portfolio at 2 Dell Parkway sold for $76 million, above asking price, in May. The sale marked a new high-water mark for the Nashville industrial market, setting a record sales price in total value and on a per-square-foot basis for infill, cross-docked bulk properties.
It has earned a 2025 CoStar Impact Award for sale of the year, as judged by real estate professionals familiar with the market.
The transaction comes after a 120,000-square-foot industrial building was constructed on the property’s former surface parking lot under the guidance of Melissa Alexander, a partner at Foundry Commercial. Before it was developed, the lot was one of the last industrial-zoned infill spaces in Nashville.
Shortly after its completion, the property was leased to tenants that included shipping provider JB Hunt, according to those who nominated the transaction, signaling the formerly underutilized property’s role in Nashville’s bustling industrial market.
"2 Dell symbolizes the beginning of Nashville's economic development wins and the start of a new era in our city's profound growth,” Alexander said. “Helping a client acquire this property over 20 years later was not just a transaction; it was a privilege to be part of Nashville's ongoing success story.”
The transaction also has connections to Nashville history: The site was home to the Tennessee Hospital for the Insane in the 1800s, and the hospital’s security shack is still standing. The state donated the property to Dell Computers, and a manufacturing operation was launched in the 1990s.
Now, the property is continuing its legacy by diversifying Nashville’s market and securing the city’s position as a hub for industrial real estate in the region, the nominators said.
About the project: The two-building portfolio was sold by real estate investor LRC Properties to global investment firm Kohlberg Kravis Roberts and Co. L.P. Tenants include JB Hunt, Amazon, Averitt, NRT, York and Guardian Fire.
What the judges said: "In a year that saw very little institutional-grade dispositions that were not at a loss, in a fire-sale situation or sold by the lender, the successful sale of 2 Dell stands out front. The repositioning of the asset with the additional construction led to a win-win for buyer and seller," said Devin McClendon, CEO of NAI Nashville Stanton Group.
"Set a record for industrial sales and incorporated a change in use into the development with the repurposing of an office component and oversized parking lot," said Buist Richardson, a principal at Avison Young.
UPDATED They made it happen: Eastdil Managing Director Brian Budnick, and Director Nick Murphy represented the seller. Melissa Alexander, partner at Foundry Commercial, and Casey Flannery, vice president at Foundry Commercial, provided leasing support.