- Shorenstein Properties has acquired the 334K SF Gulch Union building in Nashville, marking its ninth office investment in 14 months.
- The deal reflects a strategy shift toward high-performing micro markets as the firm looks to recover from pandemic-era challenges and reposition its national portfolio.
- With a 97% occupancy rate and location in a high-demand neighborhood, the Nashville property showcases renewed tenant interest in vibrant, mixed-use environments.
Betting On The Bounceback
Shorenstein Properties is ramping up its office acquisitions with a strategic bet on submarkets showing long-term promise, reports CoStar. The firm recently acquired the Gulch Union building at 1222 Demonbreun Street in Nashville, a 334,235 SF property that’s nearly fully leased.
This latest acquisition—Shorenstein’s ninth in just over a year—comes amid the firm’s broader push to reshape its portfolio. The effort follows pandemic-era turbulence that included job cuts, building forfeitures, and a more than 20% reduction in total managed SF.
Targeting High-Growth Zones
According to Managing Director Matt Knisely, the deal reflects Shorenstein’s focus on “micro markets” with solid tenant demand and constrained supply. Gulch Union sits in a top Nashville live-work-play area, surrounded by apartments, restaurants, and amenities.
Originally developed by Endeavor Real Estate Group and Granite Properties, the building was completed in 2020 and gradually leased up by tenants in professional services and legal sectors. It now boasts a 97% occupancy rate, further reinforcing the area’s strength amid broader office market volatility.
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A Comeback Strategy
Shorenstein’s renewed investment activity follows a difficult stretch. Over the past five years, the firm has forfeited control of at least three buildings. It laid off nearly 10% of its staff earlier this year. It also faced setbacks with properties like a Denver office tower purchased for $72M but later returned to its lender.
Still, the firm has also had successes—such as its 2019 purchase and profitable resale of Nashville’s UBS Tower—and continues to view cities like Nashville as critical to its national recovery.
Why It Matters
While national office vacancy rates hover above 14%, Nashville’s sits closer to 12%, with the Gulch area faring even better. Shorenstein’s strategic pivot to quality assets in strong urban areas suggests a shift in investor focus. Investors are recalibrating around resilient demand drivers such as walkable neighborhoods, modern amenities, and employment hubs.
What’s Next
Shorenstein is likely to continue leaning into office investments in supply-constrained, high-demand markets—especially where leasing fundamentals support long-term growth. Though the firm is still navigating capital constraints, its activity in cities like Nashville points to a cautiously optimistic outlook on the office sector’s future.
