A joint venture comprising PGIM, Stiles Corporation and Hensler Development has completed a 310 million dollar refinancing for Peabody Union. The scheme is a recently completed office and residential tower comprising a total of 665,000 square feet in the centre of Nashville, Tennessee. According to advisory firm JLL, Blackstone Real Estate Debt Strategies provided the debt capital.
The transaction is structured as a three-year bridge loan and includes two options to extend by one additional year each. On the advisory side, a team from JLL Capital Markets was responsible, which included Ed Coco, Paul Stasaitis, Matt Casey, Anthony Sansone, Kelsey Bawcombe and Streeter Simmons.
Strong lender demand and pre-letting to major corporate
Ed Coco of JLL described Peabody Union as one of the most compelling financing opportunities in the large-scale mixed-use segment in the south-eastern United States. The scheme attracted brisk interest from a variety of lender types. A key stability factor is a significant leasing success: Starbucks has secured an office footprint of nearly 250,000 square feet, with the lease commencing next year.
The 27-storey new development is located at 30-50 Peabody Street in the South Bank district of Downtown Nashville. The neighbourhood on the Cumberland River combines residential, work and leisure spaces. Alongside the commercial areas, the tower comprises 355 upmarket residential units as well as 52,735 square feet of experiential retail, which is scheduled to open next year.
Building features and specification details
The spaces are complemented by shared amenities for occupiers and residents:
- —Two outdoor terraces on the sixth floor, each with an area of 2,000 square feet
- —A 4,500 square foot fitness and wellness centre
- —An exclusive residents' club room spanning 4,000 square feet
- —Bicycle storage facilities covering an area of 1,000 square feet
Project partners PGIM and Stiles Corporation did not immediately respond to requests for comment regarding the completed refinancing.
