LifeWay's 15-acre campus sold for $125M cash

• LifeWay to continue occupying a portion of campus for now until it finds a new corporate home.
• Southwest Value Partners' planned redevelopment project being called Uptown for now.
• Southwest Value also buying additional property at Ninth and Church.

A San Diego-based real estate investor now owns LifeWay Christian Resources' nearly 15-acre campus after paying $125 million cash for one of downtown's highest-profile redevelopment sites.

Southwest Value Partners continues to work on conceptual plans for the property, which could see a mix of hotel, entertainment, commercial and creative office and residential uses. The company also is nearing closing on two additional parcels at Ninth and Church, which will expand the redevelopment footprint.

Charles Robert Bone, a Nashville attorney for Southwest Value, said the private real estate investment firm was drawn by the flexibility and multiple development options the LifeWay property at the gateway to downtown Nashville presents.

"They envision kind of a long-term, multiphased, mixed-use project," the former Nashville mayoral candidate said. "They view themselves as owners, not developers. For each of the phases of this project, they’ll look to bring in best in class development partners for each of the uses."

LifeWay's nine-building campus includes more than 1 million square feet of office, warehouse and parking space stretching from Broadway to Church Street and from Ninth Avenue up to the Gulch. Southwest Value's deal includes the LifeWay Christian Store at Broadway and 10th Avenue North, but the Southern Baptist Convention's five-story denominational headquarters at Ninth and Commerce isn't part of the $125 million transaction.

LifeWay, the convention's publishing arm, will continue to occupy a portion of the sold campus for now until it settles on a new permanent corporate headquarters. A new building as part of Southwest Value's redevelopment project has been mentioned as a possibility.

"Obviously, they'll love to have LifeWay as part of it, but obviously this is not contingent upon that," Bone said. "They’ve got a lot of respect for LifeWay. They've gotten to know them well."

In pursuing a sale of the nearly 15-acre campus, LifeWay cited the publishing ministry requiring less corporate space and employees because of changes in its operations over the years. Amid Nashville's development boom, real estate has become more valuable, especially near the city's core.

"The property has met the proper buyer," said Terry W. Smith, a principal in real estate firm Avison Young's Nashville office. "These folks from Southwest Value Partners are quite significant players. I think they’ve got the longevity to make it right and the financial depth."

The LifeWay transaction is Southwest Value's first deal in Nashville, but the company has developments in the South, including in Florida, North Carolina and South Carolina. Southwest Value's diverse investment interests include hotels such as a Westin in San Diego and an InterContinental in New Orleans along with its hotel development partner.

Nashville-based Gresham Smith and Partners is lead architect for the LifeWay campus project, while Southwest Value retained Colliers International for brokerage representation. ​Southwest Value’s co-managing partners Cary Mack and Mark Schlossberg will oversee the firm’s ownership of the project, currently referred to as Uptown.

As ​Southwest Value develops the property, the company could conservatively use debt as part of the financing, Bone said.

Robbie Jones, a board member of Historic Nashville Inc., said preservationists are concerned about the future of two buildings on the LifeWay campus that have historical significance. The Frost Building at 161 Rosa L. Parks Blvd., which the research technology and service company 20/20 leases, is listed on the National Register of Historic Places. The 11-story, 62-year-old Sullivan Tower at 127 Ninth Ave. N. provides a rare example of an art deco-style high-rise.

"They'll make good decisions that value the character and authenticity of Nashville," Bone said about Southwest Value. "They have an appreciation for Nashville's heritage and want to be good corporate citizens."

The two non-LifeWay parcels at Ninth and Church, which ​Southwest Value also is buying, include properties at 901, 903 and 905 Church St. occupied by Sicilian Pizza & Pasta, courier service Rush Bicycle Messengers and the office of local attorney Lewis Laska.

Reach Getahn Ward at 615-726-5968 and on Twitter @getahn.