Blackstone Real Estate Debt Strategies provided $310 million in bridge financing for Peabody Union, a 665,000-square-foot mixed-use tower in Downtown Nashville. The loan carries a three-year term with two one-year extension options.
The borrower is a joint venture of PGIM, Stiles Corporation, and Hensler Development. JLL Capital Markets arranged the transaction.
Peabody Union sits at 30-50 Peabody Street in Nashville's South Bank district along the Cumberland River. The 27-story building recently completed construction and holds 355 luxury residential units, 52,735 square feet of experiential retail, and office space. Amenities include two outdoor terraces on the sixth floor, a fitness and wellness center, a 4,500-square-foot club room, and 1,000 square feet of bike storage.
Starbucks has committed to lease nearly 250,000 square feet of office space beginning next year. The retail component also opens next year.
Ed Coco of JLL called Peabody Union "one of the most compelling mixed-use financing opportunities in the Southeast." Coco noted the deal attracted strong lender interest from multiple sources.