Nashville-based Giarratana Development has secured $75.8 million in construction loans related to its planned luxury apartment tower SoBro.
Tony Giarratana (pictured), company founder, said a senior loan and a mezzanine loan closed Monday.
“We are excited to be delivering our first high-rise apartment tower since The Cumberland, which opened in 1998,” said Giarratana, who originally announced the financing was secure at a Monday night meeting of the Urban Residents Association.
The amount includes a $58 million senior construction loan from Chicago-based BMO Harris Bank. NorthStar Realty Finance of New York provided $17.8 million in mezzanine financing.
Other equity partners in addition to Giarratana’s SoBro Development Co. (an affiliate formed in 2008 when Giarratana bought the land) include Wanxiang America Real Estate Group and Magellan Development. The trio comprises WMG Realty Holding Co. LLC and has about $12 million in equity in the project, which will carry a $90.8 million price tag. The partnership is getting from Metro about $3 million in tax increment financing related to parking for the addition of 150 public parking spaces.
The site is bordered by Second Avenue on the east, Demonbreun Street on the north and Third Avenue on the west. Its southern border is the building and parking lot that accommodate The Listening Room.
Chicago-based McHugh Construction Co. is serving as general contractor for the project and is expected to secure building permits for the tower within 10 days.
“We will start securing the site immediately,” Giarratana said.
The development team has enlisted Chicago-based Loewenberg Architects to handle design work.
In addition to the 313 apartment units, SoBro is expected to include 20,540 square feet of street-level retail space and about 500 (350 for the residents and 150 for the general public) parking spaces.
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