North Nashville Project Lands $36M Loan

Bank of America and a local authority originated two notes which mature in 2022.
Image via Pixabay

A joint venture between Elmington Capital Group, Aerial Development and Imagine1 Co. has received construction financing totaling $35.7 million for the development of North Lights, a 287-unit project in Nashville, Tenn., according to public records.

The financing package consists of two notes: a $23 million loan provided by The Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County and a $12.7 million mortgage from Bank of America. Both originations mature in December 2022 and have one six-month extension option.

The site is a 6-acre parcel located at 2300 Old Matthews Road. The property will encompass 197 apartments, 90 townhomes, 16 single-family homes and 25,000 square feet of retail space, according to project designer Centric Architecture. Amenities will include a swimming pool, a pet park, a fitness center and electric car-charging stations. The site is close to Interstate 65 and 5 miles from the city center. 

The Nashville multifamily sector experienced growth in the first quarter of 2020, helped by continuous deliveries and steady demand, according to a recent Yardi Matrix report. Developers completed more than 1,000 units and rents increased by 20 basis points on a trailing three-month basis in March. However, even with construction deemed an essential service during the stay-at-home order, developers have been impacted by social distancing rules and supply chain disruptions.