YMCA Property sold for nearly $7 million


Nashville real estate developer Tony Giarratana paid $6.7 million on Monday for the site where he’s pursuing his next downtown tower.

Giarratana now owns the property at 900 Church St. He bought the land from the YMCA of Middle Tennessee, which had used an existing building on the 0.31-acre property for office space. Giarratana is proposing a roughly 30-story tower with 312 residential units. He released new renderings of the $110 million tower in conjunction with announcing his land purchase.

With the Nov. 25 deal, Giarratana gains control of a site that’s mere steps from where Amazon is anchoring its 5,000-job operations hub — itself one bookend of the billion-dollar Nashville Yards development. Giarratana is teeing up his next high-rise at a time when companies and people keep packing into downtown — record waves of tourists, a business-day crowd that has jumped 25% in three years and a residential population that has doubled in less than a decade, according to the Nashville Downtown Partnership.


Giarratana paid an average of $486 for each square foot of the 900 Church St. site. It’s a bold-type reminder of the near-boundless surge in property values during Nashville’s real estate frenzy, with countless developers willing to pay a premium to join in the fray.

While Giarratana’s price is half the local record mark, set for a deal in the Lower Broadway tourist district, it is also bigger than just about every other downtown land deal in Nashville’s real estate boom of the past five years. For comparison, Giarratana’s price is less than $20 per square foot shy of what developers paid this year for land in SoBro where they’re building a 40-story Four Seasons hotel and condos.

The status of construction financing wasn’t immediately clear on Monday. Giarratana has said he wants to open the tower in summer 2022, one year after Amazon is scheduled to open its nearby operations hub.

Giarratana has built more apartments and condos downtown than any other developer. If built, the 900 Church St. tower would propel that tally beyond the 2,000-unit mark. Today, his projects account for roughly one of every four residential units. The vast majority are sprinkled along Church Street, including the 45-story 505 tower that opened in late 2017 — as well as downtown’s very first apartment and condo high-rises.

Giarratana struck the deal with the YMCA as he strives for new momentum on another Church Street he’s eyed — Church Street Park, at 600 Church St. Giarratana’s plans, which include revitalizing the adjacent Anne Dallas Dudley Boulevard, sparked controversy and spurred a competing proposal from a group including the owners of the Hermitage Hotel, arguing to keep the space as a redesigned park.

By Adam Sichko

Proposal to cut down on ‘party houses’ in Nashville

NASHVILLE, Tenn. (WTVF) — A Metro Councilman has proposed a bill trying to cut down on so-called party houses, but some short term rental owners say the plan goes too far.

The proposal from Councilman Freddie O’Connell would affect homes rented out by an owner who lives on the property, and would require that owner to be present while the house is rented out — saying they couldn’t leave for more than 15 consecutive hours.

O’Connell says he continues to get complaints from neighbors about the so-called party houses, which prompted him to propose the legislation.

“One of the top concerns in neighborhoods continues to be the impact of party houses on quality of life,” O’Connell said.

But some Short Term Rental owners say the new requirement would force even responsible owners to quit renting out their homes.

“I do travel for a living, and I can’t be on site supervising guests when I’m hosting, because I’m physically not here all the time,” said Peter Sternberg, a short term rental owner.

Sternberg says he uses an independent short term rental property management company, and employs outdoor video cameras and indoor noise monitors to keep tabs on sound.

O’Connell says he’s delaying the proposal to get more data, and talk with more homeowners.

By: Jason Lamb

Broadwest Nashville Condo Living

A rendering of Broadwest, Propst Development's $540 million luxury mixed-use project in downtown Nashville. Illustration: Propst

A rendering of Broadwest, Propst Development’s $540 million luxury mixed-use project in downtown Nashville. Illustration: Propst

Check out Nashville’s next condo high-rise, The Residences at Broadwest!  Soaring 400 feet over the convergence of Broadway and West End with views for days, true rooftop amenities ~400 feet in the sky, and finishes that will set a new bar for Nashville! It will also be Nashville’s first residential high-rise combined with a Conrad by Hilton hotel, all with an anticipated delivery late 2021.  

Stay tuned for more info and a Q1 2020 Sales Center opening!

Visit www.broadwestnashville.com to sign up for more info!



Greystar Buys Midtown Nashville Property for Apartment, Hotel Towers

Developer Secures Construction Loans for the Projects

A rendering of Greystar's Ascent Midtown apartments in Atlanta. A similar project is planned for Nashville. (CoStar)

A rendering of Greystar’s Ascent Midtown apartments in Atlanta. A similar project is planned for Nashville. (CoStar)

Greystar has bought a midtown Nashville, Tennessee, property and obtained construction loans for apartments and a hotel to kick off a project years in the making, according to property records.

Records show that Greystar, a Charleston, South Carolina-based developer, paid $15.5 million for five parcels at 19th and Broadway avenues, buying the parcels from Atlanta-based Regent Partners. Plans for the land show a 26-story tower with 355 units and a 16-story hotel with 220 rooms.

Property records also show that Greystar landed an $80.8 million construction loan for the apartment portion of the project through Wells Fargo. A $43 million loan was taken through Synovous Bank.

Rough rendering of Greystar’s Nashville project. (CoStar)

Regent Partners had been working on an apartment and hotel project on the site over the past four years. But a year ago it put the property up for sale with Cushman & Wakefield’s local office handling the listing.

Regent Partners is no longer involved with the project and sold their stake, according to Reid Freeman, president of Regent Partners.

Regent Partners had been pushing the latest plans through the city approval process. Washington, D.C.-based R2L: Architects was listed among the team.

The entities Greystar set up for developing the project use the firm’s Atlanta office address.

The same architect designed Greystar’s Ascent Midtown apartments in Atlanta, where construction finished earlier this year, and the adjoining Canopy by Hilton hotel, which opened last December.

Greystar has another apartment project in the works in Nashville’s The Gulch neighborhood at the western edge of downtown. It bought the property at 908 Division St. in June for $10 million and subsequently got a construction loan for it through Milwaukee-based Northwestern Mutual Life Insurance Co. for $72.35 million, according to property records.

With the deals, Geystar is entering a hot market for both apartments and hotels. Demand is strong for apartments, particularly in Nashville’s urban areas with the amount of job growth the city has experienced.

Both projects are about a mile away from Nashville Yards, a massive downtown development that will house Amazon’s operations center that is expected to employ 5,000 people.

Apartment vacancy in the area where both Greystar projects are located is below 6%, according to CoStar data. Rents have been climbing as vacancy drops.

New construction could dampen that some. Close to a third of apartment units under construction across the metropolitan area are in urban Nashville.

Meanwhile, Nashville’s hotel construction has been setting a blistering pace, surpassing even New York City in the percentage of existing properties being built.


Loan on Nashville Office Deal Exceeds Sales Price

Granite Point Provided Financing for the Purchase

Highland Ridge Tower, one of two buildings a group bought and have a loan that exceeds the sale price. (CoStar)

Highland Ridge Tower, one of two buildings a group bought and have a loan that exceeds the sale price. (CoStar)

The new owners of a prominent office tower and its neighboring building near the Nashville International Airport borrowed more for them than they paid the seller.

According to property records, AG Mortgage Investment, which is part of New York investment firm Angelo Gordon, and Dallas-based Lincoln Property Co. borrowed $87.8 million for Highland Ridge Tower and Highland Ridge IIIThey paid $85.5 million for the two office buildings, which together measure about 460,000 square feet.

Lincoln Property and Angelo Gordon officials could not be reached to comment.

The loan was done through New York-based Granite Point Mortgage Trust and matures in three years with an option to extend another two years. Granite Point has a $4.7 billion investment portfolio, according to an investor presentation filed with the Securities and Exchange Commission.

Highland Ridge was built in 2000 and housed the Bridgestone Americas headquarters until 2017 when the company moved into a new downtown Nashville headquarters tower. It is about 30% leased, according to CoStar data. Highland III was built in 1984 and is fully leased.

Local brokers said the owners might be planning upgrades to the buildings. Nashville has had a blistering commercial real estate market over the past several years but most of the activity has been downtown where the largest portion of the 7.4 million square feet of office space under construction is being built, according to CoStar data.

Small office users have favored the airport area because of affordable rents. CoStar’s Nashville market report has noted that few leases above 20,000 square feet have been signed in the area.


Nashville Developer Lands Permanent Financing for Two New Office Buildings

Principle Real Estate Investors Provides Loan for CitiView I and II

CitiView I, one of two office buildings that now have a permanent loan. (CoStar)

CitiView I, one of two office buildings that now have a permanent loan. (CoStar)

Nashville, Tennessee, real estate developer Cumberland Advisors has tapped a large institutional fund for a permanent loan on two new office buildings.

Des Moines, Iowa-based Principal Real Estate Investors loaned Cumberland $11.5 million for CitiView I and CitiView II, two office buildings the developer built in 2017 and 2018 in the Berry Hill neighborhood.

First Southern Mortgage, based in the Nashville suburb of Brentwood, advised the deal to land Cumberland the loan that pays off the construction loan the developer had with Pinnacle Bank. According to property records, the Principal Real Estate, which is part of Dublin, Ireland-based Principal Global Investors, connected with Mutual of Omaha Bank in Omaha, Nebraska, on the loan.

The office buildings total 60,000 square feet and are 100% leased. Local marketing and branding firm Advent leased all of CitiView II. Cumberland now is working on CitiView III.

This is the second Nashville refinancing deal for First Southern in the past week. Just before closing on the deal, First Southern orchestrated the $89 million refinancing Rogers, Arkansas-based Cooper Realty Investment did on its One and Two American Centers office towers.

Cooper, which bought the two West End office towers nearly 20 years ago with the Arkansas Teachers Retirement System, went with Fort Wayne, Indiana-based Lincoln National Life Insurance Co.

Commercial real estate lending has been strong this year. CBRE’s latest report shows that its “lending momentum index” increased 8.2% since June and is ahead of last year by 5%.

Historically low interest rates have been a big driver in lending activity. Stephen Brink, vice president with First Southern, said many property owners have been taking advantage of the different lending sources, such as life insurance companies, banks, commercial mortgage-backed securities firms and various other debt funds.

“For the right piece of real estate with conservative leverage levels, we’ve assisted our clients in locking up long-term fixed-rate financing below 3.5%,” Brink said.

Basically, property owners have been refinancing or locking permanent loans to hedge against interest rates rising. The Federal Reserve interest rate cuts, the latest last month, has helped the lending market.

“The 10-year treasury rate in 2019 has been as high as 2.80%, and as low as 1.45%,” Brink said. “Today’s 10-year treasury rate at 1.78% is still hovering around its lowest levels in the last 30 years.”


Los Angeles Investor Buys East Nashville Apartments to Boost Area Footprint

Property is Decades Newer Than Firm’s Other Nashville Properties.

The 2-year-old Eastland has a new owner from Los Angeles. (CoStar)

The 2-year-old Eastland has a new owner from Los Angeles. (CoStar)

A Los Angeles apartment investor has expanded its Nashville, Tennessee, footprint, buying a property that is decades newer than its other properties.

Lion Real Estate Group announced that it paid $9.9 million for the 49-unit Eastland in East Nashville, an urban area across the Cumberland River from downtown. The property also has retail on the ground level.

The price works out to about $202,000 per unit, about $100,000 higher per unit than the investor paid for the newest of four other properties it owns in suburban Nashville.

Local Nashville developers Carter and Chris Dawson, partners in Red River Investments, opened The Eastland in 2017.

Lion Real Estate’s strategy is value-add investments in apartments and owns 2,611 units across 16 properties in Los Angeles; Nashville; Durham, North Carolina; and Austin, Texas.

The Eastland sits at the corner of Eastland and Gallatin avenues near Five Points, the heart of East Nashville where five streets lined by bars, restaurants and retail intersect. Real estate firm Cushman & Wakefield rated the area as “prime hipness” in its 2019 “Cool Streets” report.

This is the third deal Lion Real Estate has made this year, adding to two others it has bought since 2017.

Its other properties are much older than The Eastland, the newest built in 1974. Lion Real Estate bought that property, the 202-unit Hampton Chase, in suburban southeast Nashville in April for $20.75 million, or about $102,000 per unit.

In January, the firm bought the 54-year-old, 160-unit Avery, another suburban property in southeast Nashville, for $13.1 million, or $81,875 per unit.

Its latest Nashville deal seems outside the firm’s strategy. But Jeff Weller, one of the founders of Lion Real Estate, said in an email that the “property was acquired for the long term as we believe there will continue to be rent growth in East Nashville, and we believe the retail component of the property will continue to be a driver for tenants.”

Weller noted that The Eastland is similar to its EastView apartments, a 121-unit property his firm developed last year in Los Angeles. Those apartments have been “incredibly successful due to its boutique look and feel,” he said.

For the Record

Patrick Inglis, John Ashley and Taylor Irwin, brokers with Colliers International in Nashville, represented both the buyer and seller in the deal.


East Nashville’s first Publix set to open early 2021


NASHVILLE, Tenn. (WTVF) — East Nashville is set to get a new Publix, Chase bank and Starbucks in the upcoming Hill Center Greenwood development.

Mayor John Cooper and Metro Councilman Brett Withers joined H.G. Hill realty company in a groundbreaking for the development on Wednesday

The 5.3-acre development will open at the intersection on Gallatin Avenue and Greenwood Avenue.

Along with the Publix, Chase and Starbucks, fourteen three-bedroom, four-bathroom townhomes will be built.


East Nashville’s first Publix will tentatively open in early 2021. It will employ 125 people, offer a delivery service, a pharmacy and online ordering for the deli and bakery departments.

Chase bank plans to expand to Nashville by opening 20 branches in the Metro area, along with 30 to 40 standalone ATMs. The Hill Center Greenwood location anticipates opening during the second half of 2020.

Plans for the area also include road improvements like new traffic signals with road markings and new sidewalks.

Posted: 9:15 AM, Nov 14, 2019

By: Caroline Sutton

Developer Reveals Plans for Hotel in Downtown Nashville

Dual Hilton-Branded Hotel to Include Total 344 Rooms

Rendering of a dual-branded hotel that Tara Investments has planned for Nashville, Tennessee's The Gulch. (Metro Planning)

Rendering of a dual-branded hotel that Tara Investments has planned for Nashville, Tennessee’s The Gulch. (Metro Planning)

A developer is taking the next step toward building a dual Hilton-branded hotel in Nashville, Tennessee’s The Gulch neighborhood.

Tara Investments, which is based in Charlotte, North Carolina, has filed plans with the Metro Planning Department’s Downtown Code Design Review Committee for its Dec. 5 regular meeting. The filing reveals for the first time images and layout of the planned downtown hotel that is expected have both a Canopy and a Homewood Suites.

The Canopy portion of the 11-story building is planned to have 181 guest rooms and suites while the Homewood portion is slated to have 153 suites.

Tara Investments bought the property from Division Street Partners, ran by longtime Nashville real estate investor George Spiva, a little more than a year ago for $9.2 million. The property housed the Yazoo Brewing Co. for about a decade. Yazoo moved its brewing operation to Madison, a neighborhood in northeast Nashville, this year.

The hotel site sits just outside the Arts Center Redevelopment District, which technically encompasses The Gulch, a redevelopment that started in the early 2000s along railroad tracks at the western edge of downtown Nashville.

It is now home to apartments, condominiums, bars, restaurants, retail shopping, offices and hotels. Development has spread north along the railroad tracks.

Normally, the developer would only need to submit final site plans to the planning department for approval. But the developer is seeking permission to move the building back on the site because of overhead power lines.

“This is one of the more minor ones we’ve seen,” said Eric Hammer, a planner for the department.

Plans call for a 2022 opening. The city has been on a hotel construction tear the past several years, surpassing New York City for the largest percentage of hotel inventory under construction.

Most of the construction has come downtown near the six year-old convention center. The Canopy-Homewood Suites project is about three quarters of a mile from Music City Center.