New Giarratana Apartment Tower Secures $60M of Total $150M Cost
- Apr 08, 2015
High-profile Nashville developer Tony Giarratana’s newest project, 505, is moving forward, having secured $47.5 million in key financing commitments, JLL announced. JLL Capital Markets is also sourcing a $90 million construction loan to complete the development’s $150 million financing. Along with the project site, valued at over $12.5 million, the apartment high-rise has to date $60 million in secured assets.
The $47.5 million secured by JLL on behalf of Giarratana Nashville, LLC, breaks down to $35 million in mezzanine financing from Chicago-based LaSalle Investment Management and $12.5 million in tax increment financing (TIF) pledged by the Nashville Metropolitan Development and Housing Agency (MDHA). The MDHA’s TIF is financed by Nashville-based First Advantage Bank.
Set to rise at the corner of 5th Avenue and Church Street in downtown Nashville, 505 is public-private partnership between Giarratana Nashville and the MDHA. Designed by Solomon Cordwell Buenz, the 45-story landmark will bring 505 apartment units to downtown Nashville. Approximately a third of the units, located in the upper part of the high-rise are designed for condo conversion, should the market conditions arise. 505 will also include 500 parking spaces, leased under a 99-year contract in an adjacent 972-car parking garage, as well as an outdoor amenity deck to be developed atop the parking facility. According to The Tennessean, 505 will boast 45,000 square feet of amenities comprised by the 33,000-square-foot outdoor rooftop amenity level and 12,000 square feet of amenities within 505.
The garage, which broke ground in fall 2014, is being developed by the MDHA on a prime downtown site formerly owned by Giarratana Nashville. Last year Giarratana broke up the site, selling the south part to MDHA and retaining the corner spot for 505. Both the garage and the residential high-rise are expected to deliver in late 2017. The $35.5 million parking facility will also include 12,000 square feet of retail space.
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Image courtesy of JLL