Giarratana Nashville is on track to close on a $93.3 million senior construction loan, thus concluding the financing portion for the company’s 505 skyscraper now under construction in the Central Business District.
Little Rock, Ark.-based Bank of the Ozarks is the lender, according to a Metro Development and Housing Agency letter addressed to Tony Giarratana.
The Bank of the Ozarks loan will be supplemented by a $37.6 million mezzanine loan LaSalle Property Fund REIT Inc. is providing.
Giarratana Investors and Chicago-based general contractor The Walsh Group are providing a total of $25 million of equity.
To stand about 545 feet tall and include a mix of ground-level retail space and apartments, 505 will be located at the southeast corner of the intersection of Church Street and Fifth Avenue North. If standing today, it would be Nashville’s tallest building consisting primarily of residential space. Viridian, the current tallest, is also a Giarratana development.
Last week, a Nashville-based development entity led by Travis Kelty acquired for $5.26 million the 1.8-acre Division Street site on which it plans a mixed-use high-rise.
Kelty and his team are eyeing the $75 million 23-story Crescendo for the site, which includes the building home to Myers Flooring. The partnership created Highpoint Division Partners for the acquisition of the property, which straddles the edges of both The Gulch and SoBro.
Crescendo would include 303 apartment units with ground-level retail shops and restaurant space and an attached 600-space parking garage. The building is projected to be 350,000 square feet.
Post Managing Editor William Williams caught up with Kelty to get a quick update.
What is the next step?
We need to finalize the design plan and determine if we’re going to have the building be 23 stories. If so, we will need a specific plan zoning.
Are all the players (including the Nashville office of Gresham Smith & Partners) previously reported still involved?
On that theme, why did you choose Atlanta-based architect KPS?
They were referred to us by our general contractor (Roy Anderson Co. of Gulfport, Mississippi, an affiliate of Tutor Perini Company)
How is the effort going to finance the project?
The first step is to secure the project equity and a development partner. Arranging the debt [via a lender] will follow.
Are you considering condos?
We are designing the units as high-end rental apartments with condo amenities.
If all went well, when might you break ground?
We will need at least six months to do the construction plans. Then Myers will need to vacate the building so that we can demolish it. It could easily be eight months before a groundbreaking.
On that theme, work is now underway on the Division Street Extension. Your thoughts?
Our timing seems to be right with the commencement of construction on the new bridge that will connect SoBro with The Gulch. This bridge will provide great connectivity between the two neighborhoods. We have to give [former Mayor Karl Dean] credit for his forward thinking and vision for this area. The bridge will be a catalyst for the redevelopment of the southern part of SoBro and the southeastern quadrant of The Gulch. I believe that this area will transform in short order into a vibrant neighborhood for Nashvillians to live, work and play. I am confident that Mayor [Megan] Barry will carry this vision forward.
An image has been submitted for the 30-unit apartment building West End Circle Flats that GH Investments LLC is developing in West End Park.
Earlier this year, GH Investments paid $2 million for the property, which is located at the northeast corner of the T-intersection of Mason Avenue and West End Circle and on the northern fringe of the West End corridor.
Officials with the development entity, which has both Nashville and Knoxville connections, could not be reached for comment.
The image, obtained from the Metro Planning Department, shows an exterior of cement board siding, brick, synthetic stucco and corrugated metal panels. The building will offer 24 two-bedroom two-bath units and six one-bedroom one-bath units.
Preliminary work is underway at the West End Circle Flats site (see here courtesy of Google Maps), on which three homes were demolished for the project. The building will rise three stories at West End Circle and four from a back alley.
Brentwood-based Malakouti Architects is serving as the designer.
(Image courtesy of GHI and MA)
Nashville ranks as the best Southeast city in which to own rental residential property and sixth-best in the country, according to a recently issued quarterly report from All Property Management.
Rounding out the top five Southeastern cities are Raleigh, Louisville, Atlanta and Orlando.
The report — the Q2 2015 iteration of the quarterly “Rental Ranking Report” — gives Nashville its ranking primarily due to a 9.3 percent year-over-year rental price appreciation, which was 87 percent greater than that of the national average and one of highest rental price appreciation rates in the country during that period. Of note, per-foot rent rates at newer urban apartment buildings in Nashville are now at about $3 (thus begging the question: "Is what's good for an investor good for a renter?")
The report (see here) cites Nashville’s high 3.44 percent annual job growth rate, low rental residential vacancy rate (4.8 percent) and median average housing inventory (42 days) as indicators that demand for Nashville rental housing is “quite strong and will likely remain that way for many quarters to come.”
Seattle ranks No. 1 in the West region; Austin, No. 1 in the Southwest region; Columbus, Ohio, No. 1 in the Midwest region; and New York City, No. 1 in the Northeast region.
All Property Management bills itself as the U.S.'s largest online network of property management companies.
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