New W Hotel in Nashville Lands $133M Financing
- Oct 08, 2018
A joint venture between Magellan Development, Corner Partnership and Hospitality Gaming Advisors has received $133 million in financing to construct a 346-key, 16-story W-branded hotel in Nashville, Tenn.
Goldman Sachs and Lionheart Strategic Management provided the senior and mezzanine financing, which offers co-terminus initial terms of three years.
“This opportunity was attractive because of its location in Nashville, a city that has been experiencing explosive growth not only in terms of resident population, but also in the number of companies from across the country that are relocating there to provide their employees a better quality of life,” Billy Jacobs, Lionheart Strategic Management’s CEO, told Commercial Property Executive. The development team is world class, with successful experience in hotel operations, the local Nashville culture and downtown development.”
The $190 million hotel will be located at 12th Avenue South and Pine Street, and is projected to open in the fall of 2020.
According to Jacobs, there was substantial interest from the lending community in the opportunity, and it was a very competitive process.
“Lenders recognize the brand value of the W and the exciting growth of the Gulch,” he said. “The W is the most exciting hospitality brand in the U.S. Its hotels cater to the discerning, experience-focused traveler who seeks the highest standard of luxury and exclusive amenities.”
Rise of the Gulch
The Gulch is a former industrial area that has been transformed into Nashville’s premier live-work-play destination. As such, it attracts residents and businesses that want to be a part of the vibrant community, which has also become a tourist destination.
“With all of the new businesses and visitors flooding the market, there was a need for a high-end hospitality option and the W will be the first luxury lifestyle hotel in the Nashville market,” Jacobs said.
There’s been a lot of activity in the area. This summer, construction of a 20-story, 329,000-square-foot Class A+ office building—the first of a three-phase, mixed-use project in The Gulch neighborhood—began. Hensler Development Group and Stiles Corp. are also proposing a mixed-use project in central Nashville with about 170,000 square feet of Class A office space in a five-story building.
Image courtesy of Lionheart Strategic Management