Santander Lends $53M on Nashville Mixed-Use Development
A joint venture between investors Atlas Real Estate Partners and Wedgewood Avenue along with developer HY Ventures has sealed $53 million of construction financing to build a mixed-use, multifamily development in Nashville, Tenn., Commercial Observer has learned.
Santander Bank supplied the loan for the JV trio’s Westerly House project in Nashville’s historic Wedgewood-Houston (WeHo) neighborhood. The area is a federally designated opportunity zone, a low-income neighborhood where developers can obtain tax breaks in exchange for certain investments.
Walker & Dunlop’s Keith Kurland, Michael Diaz, Sean Reimer Aaron Appel and Adam Schwartz arranged the transaction.
Located at 700 Hamilton Avenue, Westerly House will comprise 246 apartment units and 15,000 square feet of retail. The project is slated to break ground by the end of the year.
“Atlas is an opportunistic investment/development firm, focused on providing quality housing within growing markets throughout the Southeast,” Alex Foster, managing partner at Atlas, said in a statement. “Our goal for Westerly House is to further this growth by creating a timeless sense of place that embodies the spirit of the neighborhood and the people who work and live there.”
Manhattan-based Atlas teamed with Wedgewood Avenue and HY Ventures, both Nashville-based firms, to enlist local architects, designers and artists to spearhead the project. Westerly House will sit adjacent to the 3-acre Standard Assembly development, another opportunity zone project led by Atlas, Wedgwood and HY that will feature 310 residential units and 13,000 square feet of retail anchored by clothing store chain Moto Moda.
“We are excited for the opportunity to bring a Class A multifamily development to this already vibrant and creative community that has long been an artisan/maker-centric neighborhood in Nashville,” Nathan Hysmith, principal at HY, said in a statement. “By thoughtfully and responsibly maintaining this spirit with other like-minded developers, this walkable neighborhood will further cultivate into the artisan/maker center of the Southeast attracting additional growth of the creative community.”
Officials at Santander Bank did not immediately return a request for comment.
Andrew Coen can be reached at firstname.lastname@example.org.