Volkswagen is leasing three floors of Chestnut Towers downtown where it will have space to hold up to 140 workers, including its top local leadership.
The 30,000 square feet also will be used for VW’s purchasing and other administrative support functions, said Jill Bratina, a VW spokeswoman.
In addition, there could be a Volkswagen sign placed on the 605 Chestnut St. building, she said.
“Our employee base will grow in the next three to six months, and this lease ensures we have the space necessary for our new hires,” Ms. Bratina said.
She said the lease is for two years with an option for a third. VW’s new 1.9 million-square-foot assembly plant is slated to start production by early 2011.
Ms. Bratina said the automaker will retain its office space at Enterprise South industrial park’s Discovery Drive, which will be reoriented to support positions more directly related to plant construction.
Chris Ferguson of the Franklin Haney Co., which owns the building, said Unum Group was the sole tenant in the building until the Chattanooga-based insurer’s lease expired in August.
About 192,000 square feet of the 17-story tower remains available, he said.
Developer Franklin Haney built the structure, which is appraised for nearly $9 million, in 1979.
Eric Carlson, director of group marketing, real estate and affiliates for VW, said the location is central and convenient.
“Chestnut Towers is an ideal space for conducting business with the greater Chattanooga community,” he said. “Franklin L. Haney Co. has been a fantastic partner and we look forward to a very productive relationship with them.”
Renovations to the space are in progress and Volkswagen expects to move into the tower by February.
Mike Pare, the deputy Business editor at the Chattanooga Times Free Press, has worked at the paper for 27 years. In addition to editing, Mike also writes Business stories and covers Volkswagen, economic development and manufacturing in Chattanooga and the surrounding area. In the past he also has covered higher education. Mike, a native of Fort Lauderdale, Fla., received a bachelor’s degree in communications from Florida Atlantic University. he worked at the Rome News-Tribune before ...