The deal and the players
Blackstone Inc. is supplying bridge financing to Peabody Union, with the ownership group that includes PGIM locking in a $310 million loan from Blackstone Real Estate Debt Strategies, according to a Wednesday statement. The financing was put together by Jones Lang LaSalle's Capital Markets team.
Inside Peabody Union
The property sits on the Cumberland River just outside downtown Nashville and was developed by a joint venture of PGIM, Stiles Corp. and Hensler Development. It blends high end apartments and retail with 250,000 square feet of offices that Starbucks has already leased.
Starbucks hub and the Nashville pull
Starbucks anticipates taking the space next year, with Nashville slated to serve as the company's key office base for the Southeastern US. In recent years, AllianceBernstein, Amazon and Oracle have opted to establish a corporate base in Nashville, adding to the city's expanding roster of employers.
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A lender's note and the investor angle
"We are pleased to provide this financing to support the next phase of growth for Peabody Union, a newly-built, trophy-quality mixed use asset in downtown Nashville," Tony LaBarbera, co-head of Americas Private Investments for Blackstone Real Estate Debt Strategies, said via email. For investors tracking office-to-mixed-use plays and corporate migration, the combination of a Blackstone bridge loan, a Starbucks lease, and Nashville's expanding tenant base underscores where capital and jobs are clustering.
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