In Brief: A forthcoming mixed-use development in Nashville, blending hotel and residential spaces, has successfully secured acquisition financing worth $15.5 million.
-
Future Hotel-Residence Development in Nashville Secures $15.5 Million in Acquisition Financing
Marcus & Millichap’s IPA Capital Markets has arranged $15.5 million in acquisition financing for 319 Peabody Street in Nashville, where DAC Development plans to build a luxury hotel-and-residence tower.
IPA Capital Markets, a division of Marcus & Millichap, arranged $15.5 million in financing for the acquisition of 319 Peabody Street in Nashville, Tennessee. The financing team included Max Herzog and Andrew Cohen from New York, Gary Mozer and Lee Norman from Los Angeles, and Andrew Nesbitt from Nashville. Cerco Funding, a New York–based private equity firm, provided the financing on behalf of DAC Development, the project sponsor.
The 319 Peabody Street parcel is located in Nashville’s SoBro district, surrounded by major planned and recently delivered hospitality and residential towers. The planned 53-story development will include 405 hotel keys, a rooftop pool deck with private cabanas, a 3,100-square-foot spa, 30,000 square feet of meeting and ballroom space, a rooftop bar and grill, and 104 branded residential condominiums averaging 1,577 square feet each. Upon completion, the tower would become the second-tallest building in Nashville, after Giarratana Development’s Paramount, which is currently under construction.
The project is positioned to meet Nashville’s demand for upscale hospitality and residential offerings as the city continues to experience population growth, robust tourism, and rising rates across downtown hotels.
