GBX Group and Historic Nashville, Inc. Announce the Acquisition and Preservation of Two Historic Buildings in Nashville, Tennessee

NASHVILLE, Tennessee, March 19, 2024 – Historic preservation-focused real estate firm GBX Group LLC today announced the acquisition of two Nashville historic buildings which are listed on the National Register of Historic Places. Entities affiliated with GBX have acquired the Castner-Knott Building, at 616-618 Church Street in Nashville’s Central Business District, and the Elm Street Methodist Church, located at 614 Rep. John Lewis Way, South. GBX partnered with local historic preservation nonprofit, Historic Nashville, Inc. (HNI) to protect both structures with historic preservation easement agreements, which are designed to permanently protect the buildings’ historical exteriors. Moving forward, in addition to general rehabilitation initiatives, GBX plans to address deferred maintenance, initiate improvements that will modernize office spaces, and reposition these assets to make them attractive to prospective tenants.

Nashville has a multitude of historic buildings that have been placed at risk due to the strength of the local economy and the growing demand for downtown real estate. GBX is proud to add Castner-Knott and the Elm Street Methodist Church to our local portfolio of historic buildings that we have played a role in protecting,” said Drew Sparacia, GBX’s Founder and CEO. “By saving these historic buildings from demolition we are helping to protect Nashville’s past and architectural heritage, while adaptively reusing and repositioning these assets to be a part of the city’s future. Historic preservation incentives and our partnership with Historic Nashville, Inc. make it possible to save and reinvest in these properties, even amidst a modern-day development boom.

By leveraging various federal, state, and local incentive programs such as historic tax credits and preservation easements, GBX and project partners can access critical, non-traditional financing sources that make these otherwise cost-prohibitive projects possible. With the addition of these two recent properties, GBX-affiliated entities have acquired and preserved eight historic properties in Nashville, including the recently awarded former YWCA Building at 209 7th Ave, N (built in 1911) and several properties in the National Register-listed Rutledge Hill Historic District.

Castner-Knott Historical Information and Improvement Plans

Nashvillians Charles Castner and William Knott founded the Castner-Knott Dry Goods Company in 1898. Their 1906 move to a five-story building at the corner of 7th Avenue and Church Street led the westward commercial expansion onto formerly residential property. In 1911, Castner-Knott expanded the store to include the Armstrong Building, an Italianate building fronting on Church Street and Capitol Boulevard. During a 1950’s renovation, all levels of the two buildings were connected, the storefront windows were covered in polished granite panels, a corner entry was added at Church Street and Capitol Boulevard, and the first-floor interior was redesigned with Art Moderne details.

GBX will be undertaking targeted improvements to the historic Castner-Knott building that will aim to create an office environment that meets the expectations of today’s modern workforce. Our adaptive reuse plans will feature high-quality systems and finishes, improved amenities and common areas, and distinct workspaces that allow for social interaction, wellness, and convenience,” said Brian Cappelli, GBX’s President of Real Estate. “These assets are situated in close proximity to the Tennessee State Capitol, Broadway Avenue, the Amazon Towers at Nashville Yards, and Bridgestone Arena, providing tenants easy access to work and play at many of the great attractions that Nashville has to offer.

Elm Street Methodist Church Historical Information and Improvement Plans

Constructed in 1871, the former Elm Street Methodist Church is architecturally significant as the only extant Italianate-style church building in Nashville. Despite the loss of its tower in a 1925 fire, the building’s hooded, arched windows and doors and its wide overhangs with classical cornices impart the strong flavor of Italianate style. The congregation was formed in 1867 by the combination of two Methodist congregations that originated in the 1830’s, and the church was built four years later to house them.

Elm Street Church is in a prime location to become a commercial space supporting Nashville’s growing hospitality industry. Planned improvements will focus on the removal of ivy overgrowth on the exterior of the building, structural repairs to the floor and crawlspace, and overall improvements designed to enhance the marketability of this property and feature this neighborhood location for prospective tenants.

“We are excited to embark on a new chapter for these well-known historic properties in the heart of all of the great things going on in Nashville,” continued Cappelli.

Partnership with Historic Nashville, Inc. on Historic Preservation Easement Agreements

Through the acquisition process, GBX and HNI placed preservation easement agreements on these buildings that will preserve historic façades in perpetuity according to the Department of Interior’s Standards for Historic Preservation, as administered by the National Park Service (NPS). HNI will provide guidance on improvements and revitalization plans and conduct annual inspections to ensure compliance with the easement agreements and Secretary of Interior standards pertaining to the historic façade of the building.

The current development environment in Nashville generally favors razing for new construction over rehabilitating historic structures. Historic Nashville, Inc. is proud to partner with preservation-focused real estate partners like GBX to save at-risk buildings from bulldozers,” said Brian Mansfield, HNI’s President. “When we are successful at saving historic buildings like Castner-Knott and the Elm Street Methodist Church, we help ensure that Nashville neighborhoods and residents retain important parts of their rich heritage. Rehabilitating local landmarks for modern uses can help to spur additional preservation in the surrounding area and contribute to economic resurgence.

Contact:

Philip Winton
Vice President of Strategic Messaging
GBX Group LLC
pwinton@gbxgroup.com

About GBX Group LLC

GBX Group LLC specializes in acquiring, preserving, and operating historic real estate in urban markets. The company partners with investors to fund the purchase and preservation of historic real estate with the goal of generating community revitalization and economic growth. As of January 2024, GBX has been involved in more than 200 real estate projects in 24 states. For more about GBX, visit gbxgroup.com/.

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