Nashville-based Giarratana Development has secured $75.9m in loans for the construction of the SoBro luxury rental apartment tower in downtown Nashville, Tennessee.
Chicago-based BMO Harris Bank provided a $58m senior construction loan, while New York-based NorthStar Realty Finance – through its lending entity QARTH Holdings NT-II – provided a $17.9m mezzanine loan on the $90.8m project.
The developer typically secures three-year construction loans with two one-year extension options, said principal Tony Giarratana.
Construction will commence immediately on the aptly-named 32-storey tower, which will feature 313 rental apartment units with 20,540 square feet of street-level retail space and 502 parking spaces in Nashville’s SoBro (south of Broadway) submarket.
“They are mobilizing as we speak. The fencing is being erected, the permits are being pulled,” Giarratana said.
Giarratana Development is developing the site with Chicago-based Magellan Development Group and Wanxiang America Real Estate Group, who have contributed a combined $11.9m in equity. The balance is a $3m tax increment financing (TIF) from the Metropolitan Development and Housing Agency to create 150 public parking spaces (of the 502 total).
Giarratana completed the nearby 333-unit Encore condo project in 2008. Coming out of the recession, Girratana noted that real estate capital strongly favored rental housing, and so came to fruition the second high-rise residential building to be built in the SoBro submarket.
“This is satisfying a strong demand for upscale residential rental in the SoBro submarket,” he said. “As real estate capital becomes available for high-rise condominiums, I assure you we will be there.”