Dolly Parton Makes Massive Real Estate Purchase in Nashville

Dolly Parton is reportedly interested in establishing a hotel in downtown Nashville. According to multiple sources familiar with the project, Parton recently purchased an office building downtown and plans to convert it into a hotel, reported the Nashville Business Journal.

"Since the pandemic, commercial real estate is becoming an opportunity. I strongly believe in the future of Nashville and feel this is a great investment," Parton told the outlet in an e-mail statement.

There was a $75 million sale of the downtown's 211 Commerce building last week, according to Davidson County records. Pete Owens, vice president of marketing at The Dollywood Co., confirmed that it was Parton who bought it.

"The Dollywood Company, a joint venture between Herschend Enterprises and entertainment icon, Dolly Parton, confirms its acquisition of 211 Commerce Street, Nashville, TN. Terms of the sale will not be disclosed and plans for the future of 211 Commerce will be shared as they materialize," Owens told the Business Journal.

It has been almost forty years since the country music superstar first opened her sprawling entertainment complex, Dollywood, in Pigeon Forge, which is now home to two hotels, a water park, and a theme park.

This year, Parton already opened a hotel in Tennessee. Dollywood's second resort, HeartSong Lodge & Resort, opened last month. In a speech at the resort's dedication, Parton said, "Some people are calling me a hotelier now," adding that more Dollywood hotels are on the way, reported Condé Nast Traveler. Additionally, her Pigeon Forge theme park will open a new museum in spring 2024 called The Dolly Parton Experience.

Lincoln Commerce SPE LLC, a joint venture between Nashville-based Lincoln Property Company and Dallas-based Velocis, sold the 211 commerce office building, reported the Business Journal. Lincoln Commerce SPE purchased the 233,314-square-foot building for $50.25 million in 2021, and a total of $16 million was invested in its improvements.

In 2000, the 11-story office tower opened, with retail and restaurant space on the ground floor. Last year, the tower was home to the flagship location of the New York City-based burger and shake concept Black Tap Craft.

"Converting an office building to a hotel is complicated because offices don't need as many bathrooms. The wiring for water and electricity is different, so you have to break through the floor plate to make that happen. So it's expensive," Jan Freitag, CoStar Group's national director of hospitality market analytics, told the Business Journal. At the time of the call, Freitag was unaware of the project.