Stiles|Hensler and PGIM Real Estate to Break Ground on Mixed-Use Destination in Nashville, TN
Posted on 7/8/2022Nashville, TN, and Fort Lauderdale, FL. — July 7, 2022 — Joint venture partners Stiles, Hensler Development Group, and PGIM Real Estate, the real estate investment and financing business of PGIM, the $1.4 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU), today announced they have broken ground on Peabody Union in Nashville, TN. The JV has simultaneously closed on its construction financing led by Wells Fargo, as Administrative Agent and Sole Bookrunner, who arranged a syndicate of lenders including JPMorgan Chase, Stifel Bank & Trust and National Exchange Bank & Trust. Peabody Union will be a distinctly unique neighborhood and destination featuring innovative chef-driven dining and curated retail concepts, innovative office space and luxury residences. Set high on the banks of the Cumberland River, Peabody Union will be surrounded by acres of open space and is adjacent to the Cumberland River greenway, creating a walkable district with its own sense of place and an anchor point to the newly emerging Lower Downtown District (LoDo). The JV closed on the land in February and anticipates project completion in late 2024.
Featuring a mix of elevated retail brands and chef-driven restaurants, Peabody Union will become a new destination and gathering place for locals and discerning visitors to Nashville. The project will include approximately 50,000 square feet of new-to-market food and beverage and retail concepts, 250,000 square feet of Class-A creative office space with expansive floorplates that allow for flexible design options, and a 27-story multifamily tower featuring 354 ultraluxury apartment homes with unobstructed views of the downtown skyline and the Cumberland River. Hastings Architecture is the project architect and Turner Construction is the general contractor.
"We are excited to have broken ground on this brand-new riverfront destination that combines a curated mix of best-in-class retail, restaurant and entertainment options with luxury living and sustainable Class-A office space," said Ray Hensler, founder of Hensler Development Group. "This project is years in the making and brings together the most experienced team with the combined talent of Stiles|Hensler, PGIM Real Estate, Hastings and Turner to execute on our vision to bring new energy to the Cumberland River Greenway."
Prioritizing wellness and connectivity within the design, development, and operations of Peabody Union, the project team will be pursuing several industry-leading certifications. In addition to a focus on sustainability and health through LEED, Peabody Union will expand on health and wellness as the first newly constructed project in Nashville to achieve Fitwel certification, the world's leading certification system for health and wellness in buildings and communities, for both the office and residential components. In addition, Peabody Union will be certified by WiredScore, a measure of commitment to the demands for convenient and secure technology as workplace strategies evolve how companies and their employees stay connected throughout their day.
"Since we began planning this project back in late 2015, Nashville has continued to evolve into one of the top destinations in the country for commerce, living and entertainment," said Jeff McDonough, President of Stiles Residential Group. "We are excited to once again partner with PGIM Real Estate on another market-leading development. Together, we can think of no better city -- and no better location within that city -- to make this investment and provide for the mix of uses that Peabody Union will offer. We know it will be an iconic development for the community to enjoy upon its completion and be a great complement to the growth the city is experiencing in all sectors."
At the eastern entry to LoDo, with its location on the river and abundance of outdoor space, Peabody Union will become the public square of Rolling Mill Hill, bringing together Nashville's civic investments along the riverfront with its amenity-rich living and working spaces for those seeking a neighborhood focused on active and energetic lifestyles. Peabody Union is being developed immediately adjacent to Peabody Plaza and the Trolley Barns. Peabody Plaza, developed by Eakin Partners, offers 290,000 square feet of Class A office and 10,000 square feet of retail, and the adjacent Trolley Barns, which include the Nashville Entrepreneur Center, features approximately 90,000 square feet of retail and creative office space. All three developments combined will feature approximately one million square feet on 14 acres.
"We are excited to see the culmination of our efforts come together to break ground in the thriving market of Nashville," said Darin Bright, Senior Portfolio Manager for PGIM Real Estate's U.S. core plus equity fund. "Stiles and Hensler are best-in-class partners, and we are proud to support this endeavor together."
Inquire at peabodyunion.com.