AJ Capital Receives $27M Loan for Nashville Project

The redevelopment of the hundred-year-old building will include 80,000 square feet of creative office and 40,000 square feet of retail space.

May Hosiery - Exterior Rendering
May Hosiery – Exterior Rendering

LoanCore Capital has provided a $26.7 million, two-year, floating-rate construction loan to AJ Capital Partners to finance the conversion of a former factory in Nashville, Tenn., into a mixed use property. The project’s six buildings, which are planned to include 80,000 square feet of office and 40,000 square feet of retail, are 47 percent preleased. A number of tenants are expected to move into the property this year, according to The Tennessean.

Located at 425-431 Chestnut St. and 510 Houston St., the development sits between Interstate 65 and Tennessee Route 11 in Nashville’s Wedgewood Houston neighborhood. Construction is underway at the former home of May Hosiery, a sock manufacturer which closed its mill’s doors in 1980. The project was designed by Dryden Architecture and Design, and Concord Building Group is acting as the general contractor. The building’s future tenants include Tuck-Hinton Architects, Southcomm Media, Parson’s Chicken and Fish, Dream Technologies, and Blockhouse Barbers.

“The May Hosiery project is well conceived and will satisfy growing demand for innovative office and dynamic retail/entertainment space in Nashville’s Wedgewood Houston neighborhood,” said Christopher Knight, director of HFF, in a prepared statement. Knight, along with managing director Danny Kaufman, represented the borrower in the transaction.

AJ Capital has additional projects planned in Nashville, including a 203-key hotel known as the Graduate Tennessee, geared towards cities with large universities. In December, the firm opened an on-campus hotel under the Graduate flag in Minneapolis.

Image courtesy of Dryden Architecture and Design