Lionstone Group Signs Anchor Tenant for 1515 Demonbreun Premier West End Office/Retail Complex to Include Hotel and Condominiums.

NASHVILLE, Tenn. -- The Lionstone Group, a private real estate investment firm, announced today that it has signed a lease with Nashville's largest pure architectural firm, Earl Swensson Associates, Inc., for 60,000 square feet in its new 1515 Demonbreun office/retail development. Located in Nashville's popular West End area at the intersection of Demonbreun and Division Streets--the entrance to Music Row, 1515 Demonbreun will be a 250,000-square-foot office building with 25,000 square feet of retail space fronting Demonbreun Street.

Earl Swensson Associates, Inc., will be moving from their current location at Vanderbilt Plaza and will design the project for Lionstone. ESa President Richard L. Miller, FAIA said "We are excited about designing a signature project at the Roundabout." ESa was represented by G. H. "Chip" Christianson, II in the lease negotiations. Jim Smith of Colliers, Turley Martin Tucker will be managing the project leasing for Lionstone.

Lionstone's plans for the three-acre site they acquired from Reba McEntire in March 2006 include development of a 125-room hotel with an adjacent 100-unit luxury high-rise residential condominium tower.

"We are very excited to announce ESa's commitment to the project and the commencement of design development for this important addition to the Nashville skyline," said Lionstone Principal Doug McKinnon. "This is the premier West End location due to its visibility and proximity to Music Row, downtown Nashville, Vanderbilt University and a burgeoning Midtown residential marketplace. The project enjoys great street access via Demonbreun Street, Broadway, West End Avenue and I-40, I-65, and I-24. Construction of the office/retail space is scheduled to begin in the first quarter of 2008 with occupancy slated for the fourth of 2009."

Lionstone has been actively purchasing property in Nashville since 2004. In that year, the firm acquired the 2525 West End office/retail tower at the corner of West End Avenue and Natchez Trace. In the fall of 2005 Lionstone and its affiliates acquired 3.9 acres of Demonbreun Street properties containing 73,000 SF of Retail space including The Tin Roof as well as 15,000 SF of office space directly across from the 1515 Demonbreun site. In 2006, Lionstone acquired a 9.4-acre site on Charlotte Avenue and 28th Street and is currently assessing redevelopment opportunities for the property.

Lionstone purchased the 1515 Demonbreun property as part of Lionstone Urban Investments One - a $185-million discretionary fund that acquires real estate assets in high amenity urban areas. Formed in 2001 by partners Tom Bacon, Dan Dubrowski, and Glenn Lowenstein, the Lionstone Group serves the interests of real estate capital by performing extensive market research to find unique value for investors. The firm owns properties throughout the United States.