SomeraRoad Secures Ground Lease for $128M Nashville Development

Prima at Paseo South Gulch. Image courtesy of Safehold

Safehold has arranged another ground lease in the Nashville, Tenn., metro, which will be used to develop a 278-unit community. Safehold provided the ground lease to SomeraRoad, which will use it to capitalize its $128.4 million development of Prima at Paseo South Gulch in downtown Nashville.

SomeraRoad also secured loans from S3 Capital and recently broke ground on the mixed-use project, expecting completion by the second quarter of 2023. The developer tapped Clark Construction as the general contractor and gathered a team of design firms, including ESa, Hawkins Partners, Manuel Zeitlin Architects and Kimley Horn. Hawkins Partners also recently served as the landscape architect for another downtown Nashville community for The Beach Co.

SomeraRoad’s 16-story community is expected to have a pool, game room, fitness center, business center, and roof club and lounge. SomeraRoad is also building 18,000 square feet of Class A office space, as well as 8,000 square feet of retail space, within Prima at Paseo South Gulch.

CONNECTED TO HISTORIC BUILDINGS

When completed, the community will connect with two of SomeraRoad’s recently-completed adaptive reuse projects of historic buildings that now also offer office and retail space. Prima at Paseo South Gulch will be later joined by a second tower that’s expected to begin construction in early 2023. The second building is slated to rise 20 stories and have 328 units and 2,000 square feet of retail space. The two residential towers are also part of SomeraRoad’s Paseo South Gulch master plan that calls for more than 600 apartments and approximately 110,000 square feet of retail and creative office space.

With Prima at Paseo South Gulch, Safehold has closed on its fourth ground lease in the Nashville metro. Since its founding in 2017, the company has reached its 100th ground lease, which brought its aggregate portfolio worth to $4.5 billion, in December. Safehold’s ground lease portfolio spans across the U.S., but recently expanded to the Chicago market. Last month, the company provided a ground lease to recapitalize 1000 South Clark, a 469-unit community in downtown Chicago.