$80M Multifamily Project Rising in Nashville

NASHVILLE—Stiles is partnering with Nashville developer Ray Hensler to build an $80 million, 23-story, high-rise luxury apartment building in Nashville's burgeoning Gulch district. The Gulch is a 22-block redevelopment district located on the west edge of downtown that's benefited from a spike in urban development.

Marking Stiles' re-entry into the Nashville market, construction of the 312-unit project located at 12th Avenue and Laurel Street is set to begin immediately. The developers are pursuing LEED Silver certification.

“You don't have to work too hard to see why Nashville's so hot right now,” Hensler tells GlobeSt.com. “Whether you're looking at steady job growth, big city in-migration or just signs of an emerging creative class, Nashville seems to be on everyone's radar. And regardless of whether you're talking for-sale or rental, the Gulch has proven itself to be the city's premier urban neighborhood from the standpoint of pricing, demand and volume.”

The developers claim the Laurel Street luxury multifamily project will be the first project in Nashville to cater exclusively to the coveted rent-by-choice demographic. Their research shows this demographic is mostly affluent residents seeking a condo quality urban lifestyle, but who also desire the flexibility and high level of service that leasing provides.

“An important issue for us was the fact that nobody seemed likely to deliver a similar, comparable and competitive product for this very discerning tenant anytime soon,” Hensler says. “We think being the first mover into this niche will have big advantages.”

Hensler was a major driver of Stiles' initial entry into the Nashville market back in the early 2000s. During that time, Stiles acquired and developed more than one million square feet of commercial space in Nashville. Earlier, Hensler also led the development of Sunrise Harbor, a 368-unit, mixed-use luxury apartment community located in Fort Lauderdale and developed by Stiles in 2000.

According to Stiles Chief Investment Officer Rocco Ferrera, Nashville's diverse and growing economy presents a major opportunity for commercial real estate, particularly multifamily investment. He says, “Nashville is one of the most exciting markets in the Southeast with all of the right ingredients, including government, dominant business and healthcare sectors, strong tourism, a top-rated university and medical system as well as a vibrant music industry.”

The 327,000-square-foot multifamliy project is expected to be completed by summer 2014. The ground floor of the property will also feature a 7,000-square-foot chef-driven restaurant and bar. The project has been designed by Hastings Architecture Associates and will be constructed by JE Dunn Construction. Financing was arranged by HFF and is being provided by US Bank and JP Morgan.