http://www.blueridgecos.com/news/index.php en-us CuteNews http://www.blueridgecos.com/news/index.php?subaction=showfull&id=1297266464&archive= 1297266464 Wed, 09 Feb 2011 08:47:44 -0700 http://www.blueridgecos.com/news/index.php?subaction=showfull&id=1297265970&archive=
The former Goody's Family Clothing headquarters may have seemed like a sure bet when a San Jose, Calif.-based investor bought it for $47.6 million in 2007, but when Goody's went belly-up in 2009 — victimized by an economic downturn that battered retailers — it left building owner SJW Land Co. scrambling to find a new tenant.

Enter South College. In early 2010, the private institution inked a lease for nearly 85,000 square feet of offices in the building to expand its education and health care programs.

South College's move represented the latest evidence of a higher-education cluster along the Pellissippi Parkway corridor — also home to the University of Phoenix, Strayer University, Tusculum College and Pellissippi State Community College — and of increased academic demand during the economic downturn.

Matt Fentress, a broker with NAI Knoxville, said that in general, 'with a lot of people unemployed and businesses not actively hiring … it was a good time for people to go and increase their knowledge and increase their ability to get jobs by getting education.'

There's still plenty of space to fill in the Goody's campus, but the South College lease helped bring the prominent building back to life — and earned 'Deal of the Year' accolades from the East Tennessee chapter of CCIM, which confers the Certified Commercial and Investment Member designation, as the largest single commerical real estate transaction in Knoxville.

Three brokers helped put the transaction together: Don Brewer, now with Cornerstone CRES | Cushman & Wakefield Alliance, and Louise Frazier and Jay Cobble, of Blue Ridge Companies.

Brewer said that prior to Goody's bankruptcy, he had worked with the building's owner in an effort to sell some excess land on the site, while Frazier said Blue Ridge had worked previously with the growing South College. She said the brokers spoke with the college about the building, and 'from a long-term growth standpoint it was a great fit for what they were looking for in a new location.'

Not that the job is done. The property still has 50,000 square feet of Class A office space available, while an adjacent warehouse — which is being marketed by Philadelphia-based Binswanger — has 350,000 square feet available.

All that vacancy is indicative of a commercial property market that remains slow, in Knoxville and across the country.

Roger Moore, president of Sperry Van Ness/R.M. Moore, said his firm's sales and lease volume was up about 22 percent in 2010 — but with a significant twist.

Traditionally, Moore said, sales would make up about 75 percent of his firm's year-end transaction volume, while lease deals would account for about a quarter. In 2009, though, leases accounted for nearly 70 percent of volume, while last year it was a 50-50 split.

But Moore did find a reason for optimism as 2011 kicks into gear.

I guess a difference for us this year, as opposed to this time last year, (is that) this time last year … it felt like we had no pipeline,' he said. 'I mean we were pretty much deal to deal, and there was not a tremendous amount of opportunities coming in the future. And this year, going into this year, we have considerably more in our pipeline than we had a year ago.'

Some data back up Moore's intuition.

According to New York-based firm Reis Inc., office properties nationwide absorbed 2.5 million square feet of space in fourth quarter 2010, the first time since 2007 that the trend ticked up.

Victor Calanog, the firm's vice president of research and economics, analyzed the data to mean that improvements in the office sector won't proceed at 'breakneck pace,' but the sector will likely stabilize and post solid improvements in 2011.

According to Reis, the Knoxville office market had a vacancy rate of 17.5 percent in the fourth quarter, compared to 17.6 percent nationally.

The key to bringing that number down, of course, is putting people back to work — as Fentress, of NAI Knoxville, put it, 'in order to get people inside offices, you've got to have jobs.'

University of Tennessee-prepared 2011 Economic Report to the Governor, released in late January, predicts job growth this year and next, lead by increases in the professional and business services sector, the unemployment rate will remain relatively high at 9.1 percent this year before dipping to 8.8 percent in 2012.

From Nashville to Washington, D.C., politicians and policymakers — including former Knoxville mayor and Gov. Bill Haslam — are working frenetically to find solutions to that stubborn unemployment problem.

But while they wait, local brokers are focusing on the positive — with a fair dose of caution. Brewer, who helped ink the South College deal, cited a pickup in activity as a good sign.

'It feels like it's going to be better than the middle of last year,' the broker said of 2011. 'But I'm not making any prognostications.'

Business writer Josh Flory may be reached at 865-342-6994.]]> 1297265970 Wed, 09 Feb 2011 08:39:30 -0700 http://www.blueridgecos.com/news/index.php?subaction=showfull&id=1291662028&archive= Blog by Josh Flory, Knoxville News Sentinel
12/1/10

Insurance firm Willis of Tennessee has inked a lease deal for 16,400 square feet of office space in Brookview Town Center, which is located near the intersection of Weisgarber Road and Northshore Drive.

According to a news release from brokerage firm Cornerstone CRES, Willis will occupy a portion of the building's fifth floor, and is expected to move in April. The local broker on the deal was Mitch Taylor, of Cornerstone.

According to its web site, the UK-based firm's Knoxville office is currently located at 6322 Deane Hill Drive.

Update:
Louise Frazier, of Blue Ridge Realty, represented the landlord on the deal. Frazier said in an email that the office property is now 65 percent leased, with two pending transactions that should take it to 72 percent by April.]]> 1291662028 Mon, 06 Dec 2010 12:00:28 -0700 http://www.blueridgecos.com/news/index.php?subaction=showfull&id=1286994097&archive=
Number 26: Knoxville, Tenn.
2009 Rank:: NA
Entry-Level Employers: 23
Average Annual Pay: $37,820
Cost of Living Index: 89
Unemployment Rate: 8.5 percent

Knoxville lies under most people's radar. But its stable economy, driven by a diversity of industries, is worth a second look for recent college graduates. Many young people are already in the city, because it’s the base for the University of Tennessee at Knoxville, which also boosts the economy. Health-care, sales, and driving jobs are among the listings. Growth in trade, transportation, and utilities is evident. The city is home to the government-run Tennessee Valley Authority, which provides electricity for 9 million people in the southeast.]]> 1286994097 Wed, 13 Oct 2010 11:21:37 -0700 http://www.blueridgecos.com/news/index.php?subaction=showfull&id=1286993930&archive=

- Business Facilities, a national economic development publication, issued its annual 2010 Rankings Report and Tennessee, along with many cities throughout the state, earned top honors. The Volunteer State was ranked number one in the nation for Automotive Manufacturing Strength, number two for Economic Growth Potential and number five for Best Business Climate. A complete list is as follows:

- State Rankings
# 1 Automotive Manufacturing Strength
# 2 Economic Growth Potential
# 5 Best Business Climate
# 5 Quality of Life
# 5 Solar Energy Manufacturing Leaders
# 6 Alternative Energy Industry Leaders
# 7 Cost of Labo# 9 Best Transportation Infrastructure

- Knoxville Metro Rankings
# 5 Top 10 Metro Economic Growth Potential (Under 200K Population)
# 7 Alternative Energy Industry Leaders
# 10 Top 10 Metro Best Cost of Living]]> 1286993930 Wed, 13 Oct 2010 11:18:50 -0700 http://www.blueridgecos.com/news/index.php?subaction=showfull&id=1286993802&archive=
UT is among only 15 percent of the nation's four-year colleges and universities to be included in the new 2011 edition of "The Best 373 Colleges" and also was listed as one of the best colleges in the Southeast by The Princeton Review, one of the nation's top education service and evaluation companies.

For the third year in a row, The Princeton Review also recognized UT Knoxville for its environmental efforts. The campus' rating for green initiatives moved up a couple spots from last year. The Princeton Review also highlighted UT's "Vol spirit" and that "practically every campus group lives up to the ‘Volunteer' name by donating time and resources to our campus and community." UT's student body is "friendly" and "very school spirited." Knoxville was described as "a great college town."

"This recognition reflects our continued efforts to strengthen the quality and value of an education from UT Knoxville," Chancellor Jimmy G. Cheek said. "Providing a world-class education is critical as we pursue our quest to make UT Knoxville a Top 25 public research university."

Central to UT Knoxville's environmental efforts is the Make Orange Green program, which has been recognized across the state and nation as one of the top campus environmental programs. The Switch Your Thinking campaign, launched in 2008, has helped reduce campus electricity costs by $1.18 million - or 10 percent. UT Knoxville was the first university in the state to institute a student-initiated fee for the purchase of green power.
The rankings are based on survey responses from more than 122,000 students at 373 schools about academics, admissions selectivity and quality of life, in addition to institutional data The Princeton Review collected during the 2009-10 academic year.

Robert Franek, The Princeton Review's senior vice president for publishing, said that schools are chosen primarily based upon their academics.
"We commend the University of Tennessee for its outstanding academics, which is the primary criteria for our selection of schools for the book," he said. "Our choices are based on institutional data we collect about schools, our visits to schools over the years, feedback we gather from students attending the schools, and the opinions of our staff and our 28-member National College Counselor Advisory Board."
Source: University of Tennessee Knoxville]]> 1286993802 Wed, 13 Oct 2010 11:16:42 -0700 http://www.blueridgecos.com/news/index.php?subaction=showfull&id=1283264412&archive= Wall Street Journal - August 21, 2010
By M.P. MCQUEEN
Looking to snap up some investment properties on the cheap? You may want to consider Durham, N.C., Indianapolis and Huntsville, Ala. They are among the best places to invest now, according to a new report that ranks the best and worst markets for conservative residential-real-estate investors. Hard-hit Las Vegas and Orlando, Fla., are among the riskiest.]]> 1283264412 Tue, 31 Aug 2010 07:20:12 -0700 http://www.blueridgecos.com/news/index.php?subaction=showfull&id=1280154668&archive=
The burger chain will open a location in the retail and office development, Brookview Town Centre, with hopes of being ready to serve folks sometime in September.

"Certainly, the Bearden area is a great location because of the traffic and the people who live there," said Sean Whitacre, Knoxville area franchise manager, who runs the day-to-day operations.

This will be the area's sixth location with two more planned down the road. The local franchise is owned by Gibby and Tina Lepsig.

Other Five Guys are in Turkey Creek, Emory Road in Powell, Hamilton Crossing in Alcoa, Lenoir City, and most recently, Pigeon Forge.

Five Guys, founded in 1986 in Washington D.C., has found a loyal following as one of the fastest growing franchises across the country.

According to its website, more than 200 Five Guys will open in 2010.

By Josh Flory, Knoxville News Sentinel - Property Scope]]> 1280154668 Mon, 26 Jul 2010 07:31:08 -0700 http://www.blueridgecos.com/news/index.php?subaction=showfull&id=1275582005&archive=
Anderson Management Services, Inc. took 8,000 SF, while TrustFirst, Inc. took 2,650 SF. According to Frazier, Anderson was represented by Bill Bullock, of Knox Office Realty, and TrustFirst was represented by Kathleen Archer, of Keller Williams.

Frazier said the building is now 62 percent occupied.

Posted by Josh Flory on June 2, 2010 at 12:45 PM]]> 1275582005 Thu, 03 Jun 2010 09:20:05 -0700 http://www.blueridgecos.com/news/index.php?subaction=showfull&id=1265901937&archive=
South College will take almost 85,000 square feet of the one-time corporate offices off Parkside Drive and has an option to lease the remaining 50,000 square feet. The former Goody's distribution warehouse, which covers 350,000 square feet on the site, is not part of the South College expansion.

Terms of the lease agreement were not disclosed, but as part of the 10-year lease South College reached with property owner SJW Land Co. of San Jose, Calif., the school can renew the lease for a second 10-year period. As part of the expansion, the school will vacate its classroom space on Hayfield Road at Parkside Drive when its lease expires in late summer.

The growth is expected to create about 50 jobs within three years, according to the school, which now employs more than 160. The Parkside Drive learning center will be about 30,000 square feet larger than South College's Lonas Drive building.

Steve South said he signed the lease last week, almost 20 years to the day after he acquired Knoxville Business College and Cooper Institute to form South College.

"We want to expand, and if we want to expand, we need to add space," South said, adding that work will begin within a month to renovate the former corporate offices into classroom and lab space. "In the last two years we've grown 21 percent year over year."

Johnson Architecture of Knoxville is doing design work on the project. A general contractor has not yet been named.

South noted that the school has grown from 600 students to more than 1,000 in five years and has seen a sizeable increase in course offerings.

As an example, the school's physician assistant program admits 50 students a year but now has 700 applicants for those seats, according to Kimberely B. Hall, South College executive vice president.

And a major reason for the growth is the addition of a degree program in pharmacy.

South College has received approval for the program from the Tennessee Higher Education Commission and the Commission on Colleges of the Southern Association of Colleges and Schools. Last month it submitted an application for pre-candidate status to the Accreditation Council for Pharmacy Education. The council will conduct an 18-month review of South College's new program. If approved by the ACPE, the school will begin pharmacy classes at the Parkside Centre Learning Site in August 2011. Accreditation by ACPE allows South College pharmacy graduates to take their Tennessee board exams to become licensed pharmacists.

South College is planning to admit 50 students in its first-year pharmacy program and eventually increase that to 75. The school is offering an accelerated program, where students can get their doctor's degree in pharmacy in three years instead of the standard four years, Hall said. If the pharmacy program is approved, South College would join East Tennessee State University, Belmont College, Lipscomb University, Union University and the University of Tennessee as schools in the state with pharmacy programs.

The Knoxville-based school also is offering advanced degrees for teachers and education students.

When the renovation is complete in time for fall semester, students in the nursing, physician assistant and education programs will report to the new Parkside Centre Learning Site, which will have new labs and library and have access to an auditorium built when Goody's occupied the facility. Goody's vacated the site when it went out of business in early 2009.

Remaining at South College's Lonas campus will be business, legal, criminal justice, medical assisting, radiography, physical therapist assistant, science and general studies programs and courses.

Hall said 600 to 700 students will study at the Parkside campus and about 600 at the Lonas campus.

South said he was actively looking to build another education facility in West Knoxville and had eyed the Goody's building when he was approached by local real estate brokers Louise Fogarty and Jay Cobble of Blue Ridge Cos. and Don Brewer of Realty Investment Services.

"I thought I had enough space here," South said, referring to the Lonas Drive campus that fronts the junction of Interstates 640 and 40.

But student enrollment and study programs that were full and growing forced South to quickly reassess his situation.

The Goody's site also has a high-profile position along busy I-40 between Cedar Bluff and Lovell Road.

"It had everything we were going to build, including an auditorium," South said. "We can now add programs we couldn't have three years ago."

South is considering adding a culinary arts study program and distance-learning courses, where students from outside the area could take courses via the Internet.

Hall said South College continually reviews education growth areas 10 and 15 years out and works with Knoxville-area employers to fill needs, such as offering more health-care fields. She said projected growth areas for the next 10 years are physician assistants, physical therapy assistants, medical assistants, imaging professionals, business programs, and elementary education teachers.

"While we've grown, we're still a small-school environment," Hall said, adding that the class sizes range from 20 to 50 students and the student-teacher ratio is 15-1. "We're still in a small-school category." She noted that employment has been growing, too, doubling in five years.

Cobble said the brokers were hired last spring by SJW to market the Goody's property, which sits on 55 acres near the intersection of Parkside Drive and Lovell Road. Negotiations with South College began some time after that.

Cobble said local interest in leasing or buying the property has been stronger than outside interest, although several parties outside Knoxville have inquired.

"Given the market conditions, to find such a large user to expand into that space is ideal. It's great news to help a company grow and find a good use for the space. It helps the Knoxville office market to stabilize the space," Cobble said.

He described the Goody's space as Class A in a premiere location with "excellent demographics and incredible visibility to promote the business."

Cobble said Class A office space in Knoxville typically leases for $18 to $24 per square foot, with new construction of Class A space going for $20 to $24 per square foot.

"We have had a lot of interest in that property and have been negotiating with more than one user. And there's still interest in the remaining space," Cobble said.

Business editor Bill Brewer may be reached at 865-342-6319.]]> 1265901937 Thu, 11 Feb 2010 08:25:37 -0700