Virginia Springs, a new pair of Class A office buildings on Virginia Way in Brentwood, is in the final phases of construction and is awaiting the Nashville-based prison management company CoreCivic Inc., as a tenant.
The company has sold its Green Hills property for $12.6 million and will relocate to Brentwood’s new Virginia Springs office complex in 2019.
The buyer of the Green Hills property, with an address of 10 Burton Hills Blvd., is Magnolia Capital Investments. The new owner will lease back to CoreCivic until the move to Virginia Springs is finalized.
“Like many growing organizations, we’ve been assessing our future office space needs and considering different options and locations,” CoreCivic manager of Public Affairs Rodney E. King said. “To that end, we recently completed the sale of our headquarters in Green Hills, which includes a lease agreement for the continued use of the building until mid-year 2019. The company also finalized a lease agreement for its future headquarters, which will be located in Brentwood. We are still working through the planning and logistics for the transition.”
Highwoods Properties is the developer of Virginia Springs at 5501 Virginia Way, near Granny White Pike across from Brentwood Academy and the headquarters building of Tractor Supply.
CoreCivic previously operated as Corrections Corp. of America. CCA bought the Green Hills property in 1996 for about $1.7 million, according to Metro records.
Led by CEO Damon Hininger, CoreCivic operates four Tennessee prisons and detention centers in the state’s various counties. The company’s facilities house about one-third of the state’s roughly 30,000 inmates. In all, the company runs 51 facilities — it owns 44 of them — that have a capacity of about 73,000 beds. In recent years, Hininger and his team also have pushed further into the halfway houses business, where they now own 26 centers with a capacity of roughly 5,000 beds, and into property management for government entities. The latter now comprises 13 building totaling 1.4 million square feet.