Editor's note: This story was updated at 11 am Nov. 22
In its second office purchase in Chattanooga in as many years, a Nashville-based real estate investment firm has purchased a medical office building in the redeveloping southside of downtown for $7.4 million.
Excelsior Capital, a Nashville-based real estate private equity investment company that acquired a retail and office complex at Friar's Branch on Shallowford Road last year, bought the CHI Memorial Medical Office Building at 320 E. Main St. last week, according to records filed with the Hamilton County Register of Deeds.
The 17,837-square-foot office was built in 2014 and houses the Center MedSpa on the first floor and the Center for Integrative Medicine on the second floor. The property is at 100% occupancy and the 1.2-acre site includes both on-street and off-street parking.
The purchase price is equal to nearly $415 per square foot, which is one of the richest prices paid for office space in Chattanooga.
David DeVaney, president of the Chattanooga-based real estate firm NAI Charter, which is managing the property for Excelsior Capital, said the office is located in one of the fastest-growing corridors of Chattanooga and has a lease with a strong medical tenant at CHI.
"In the current environment, there is a lot of money chasing medical office leases, which are viewed as strong and low risk investments," DeVaney said in a phone interview Monday. "Being located on East Main Street, this is also a highly desirable and developing area that is attracting a lot of local and regional investment interest. It's one of the strongest areas of town."
In April 2021, Excelsior Capital bought a 99,878-square-foot multi-tenant office complex at Friar's Crossing at 6020 Shallowford Road. The original building was constructed in 1988 and the other two were added in 2003 and 2006.