LOS ANGELES, CA - Mesa West Capital has made its first loan in the state of Tennessee providing Chicago-based Magellan Development Group with $88.3 million in first mortgage debt to refinance its newly completed project known as The SoBro, a 313-unit class-A multifamily apartment building in downtown Nashville. The financing included $20.3 million in mezzanine financing that was sold to an institutional investor at closing.
Completed in 2016, The SoBro is a luxury multifamily building located in Nashville’s lower Broadway entertainment district, one of the city’s most popular dining and entertainment areas. The 33-story high-rise was recently recognized by the Nashville Downtown Partnership for “making the city’s core a better place.”
The SoBro was completed in July 2016 with the first move-ins occurring in October 2016. Located at 205 Demonbreun Street, The SoBro offers a mix of studio, one-, two-, and three- bedroom floor plans. At the time of closing, the building was 25% leased. The highly amenitized building includes a state-of-the-art fitness center, conference and meeting rooms, social and gaming lounge and outdoor dog area. The City Tap House, a Philadelphia-based craft beer tavern will operate a full service restaurant in one of three retail spaces on the ground floor as well as a rooftop bar on the building’s 10th floor amenity deck.
“We’re thrilled by the initial response that we’ve received from residents searching for a luxury apartment building in the heart of Nashville’s downtown”, said Brian Gordon, Executive Vice President with Magellan Development Group. “Our combination of urban chic unit interiors, extensive building amenities, fantastic river and city views and a true walk-to-work location really sets us apart from our competition.”
“The SoBro is a high-quality asset that represents Nashville’s evolution as a desirable market for institutional capital,” said Mesa West Capital Vice President Matt Snyder who originated the financing out of Mesa West’s Chicago office. “Nashville is experiencing significant population growth, especially among millennials who are flocking to the region for its increasing number of job opportunities along with the region’s active lifestyle and cultural base. The SoBro is located and designed to specifically to meet the demand for housing in the urban core by this demographic who prefer to rent versus own. Our financing will allow Magellan to take advantage of Nashville’s strong job market as they lease up and stabilize the building,” he said.
The loan was arranged by Michael Kavanau and Daniel Kaufman of HFF’s Chicago office.
About Mesa West Capital, LLC: Mesa West Capital is a privately held portfolio lender with a capital base of more than $4.0 billion with offices in Los Angeles, Chicago and New York. Mesa West has an established debt platform that continues to provide flexible and reliable capital for real estate acquisitions, re-financings and re-capitalizations on office, retail, industrial, multifamily and hotels across the United States. Mesa West’s lending portfolio includes all major property types with loans sizes ranging from $20 million up to $300 million. Since inception, the firm has sourced and closed more than 245 transactions totaling in excess of $10 billion.