Dover Motorsports, Inc. announced that it has entered into a definitive agreement to sell its Nashville Superspeedway facility to an entity owned by Panattoni Development Company, an international commercial real estate development company. specializing in industrial, office and build-to-suit projects.
The company, based in Newport Beach, CA, specializes in industrial, office and build-to-suit projects.
Under the terms of the agreement, Dover Motorsports and its wholly-owned subsidiary, Nashville Speedway U.S.A., Inc., will sell the Nashville Superspeedway facility along with some related equipment and assets for $ 27.5 million in cash and the assumption by the purchaser of obligations of Dover Motorsports under certain Variable Rate Tax Exempt Infrastructure Revenue Bonds.
The bonds are the obligation of the Sports Authority of the County of Wilson, Tennessee and were issued by the Sports Authority in 1999 in order to build certain infrastructure improvements benefiting the speedway.
Debt service on the bonds, which have a remaining principal balance of $ 17,200,000, is payable from property and sales taxes generated by the facility. Principal and interest on the bonds are secured by a letter of credit provided by Dover Motorsports which will be replaced by a letter of credit provided by the purchaser.
Closing is anticipated to take place in the first quarter of 2017.
The track was part of an expansion program by Dover Motorsports. Despite a location in a fast-growing area in the NASCAR heartland, the track was unable to land major races and was closed.
The developer’s plans for the large track site were not immediately announced. Nashville continues to attract businesses to the capital city. A previous deal to sell the track fell through.
