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real estate investment firm has sold two Downtown Nashville office buildings at a significant loss, totaling $115 million below their original purchase price. The sales occurred in late December, with the properties changing hands for substantially lower prices than what they were worth just five years ago. Wheelock Street Capital, the seller, did not disclose the reasons behind the low sale prices, but industry experts point to the decline of office valuations and occupancy rates nationwide since 2020.

    The COVID-19 pandemic led to a shift in office space needs, with many employees working remotely. As a result, office occupancy rates have remained down overall, with about one in five Downtown Nashville offices vacant, particularly in older buildings like the two sold by Wheelock. The Philips Plaza building, a 20-story tower built in 1975, was sold for $17 million, a loss of $94.5 million from its original purchase price of $111.5 million.

    The Parkway Towers office building, which opened in 1968 and features 11 floors of office space and 10 floors of parking, was sold for $12.5 million, a loss of $21 million from its original purchase price of $33.5 million. Wheelock had previously planned to convert the Class B office building into apartments.