Warner Bros. Discovery called it a wrap on its portfolio of office and land properties in Knoxville, Tennessee.
The portfolio, which comprises two office buildings with a combined 344,000 square feet and an 11.18 acre area of land, was sold for $35 million to Jackson, Tennessee-based Apex Bank in March 2023.
The deal was recognized as the sale/acquisition of the year in Knoxville as part of the 2024 CoStar Impact Awards, which were judged by real estate professionals familiar with the market.
Due to the merger between Warner Bros. and Discovery in 2022 and the COVID-19 pandemic decreasing the value and necessity of office space, the newly combined company decided to prioritize its hubs in New York City, Atlanta and Los Angeles.
Apex Bank has since sold one of the office buildings and the land to fashion and lifestyle brand Altar’d State for a combined $31 million in October.
About the Deal: The office building at 550 Frank Gardner Lane was built in 2010 and is LEED Gold Certified.
What the Judges Said: "The Warner Bros. Discovery Campus was a high-profile property occupied by the national headquarters of the company, as well as a significant Knoxville employer. The appearance of a vacant property of this size was a negative for the Knoxville community. The sale of the property to another local firm who would occupy and also sell or lease other portions was important to support the market. This was as significant as any other major transaction during the past few years," said Louise Frazier, president of Blue Ridge Realty.
They Made it Happen: Jay Cobble, partner and principal broker, Providence Commercial Real Estate.