Nashville, Tenn.—Mesa West Capital has made its first loan in the state of Tennessee, providing Chicago-based Magellan Development Group with $88.3 million to refinance its newly completed project known as The SoBro. The financing included $20.3 million in mezzanine financing that was sold to an institutional investor at closing.
The property is a 313-unit apartment building in downtown Nashville that was completed and took its first renters last year. The SoBro is in Nashville’s Lower Broad entertainment district, a popular dining and entertainment area.
The property offers a mix of studio, one-, two- and three-bedroom units, and is 25 percent leased. Common amenities include a fitness center, conference and meeting rooms, social and gaming lounge and outdoor dog area.
The City Tap House, a Philadelphia-based craft beer tavern, will operate a full service restaurant in one of three retail spaces on the ground floor. It will also run a rooftop bar on the building’s 10th floor amenity deck.
Mesa West Capital Vice President Matt Snyder originated the financing out of Mesa West’s Chicago office. The loan was arranged by Michael Kavanau and Daniel Kaufman of HFF’s Chicago office.