NASHVILLE, TENN. — A partnership between PGIM, Stiles Corp. and Hensler Development has received $310 million in bridge financing for Peabody Union, a recently completed mixed-use project situated along the Cumberland River in downtown Nashville. Blackstone Real Estate Debt Strategies (BREDS) provided the financing.
Ed Coco, Paul Stasaitis, Matt Casey, Anthony Sansone, Kelsey Bawcombe and Streeter Simmons of JLL Capital Markets secured the financing on behalf of the borrower. The three-year bridge loan carries two one-year extension options.
“Peabody Union represents one of the most compelling mixed-use financing opportunities in the Southeast, combining trophy-quality construction, an exceptional sponsorship team and a transformational office lease commitment from Starbucks Corp.,” says Coco. “We had a significant amount of interest from a variety of lender types.”
Completed in 2025, Peabody Union comprises a 27-story luxury residential tower, Class A office space and curated retail and restaurant space.
The office component — which totals 249,988 square feet — is fully leased to Starbucks Corp. Starbucks plans to make the office its Eastern Headquarters beginning in 2027, when the company takes occupancy. Amenities at the office building include two 2,000-square-foot outdoor terraces, a 4,500-square-foot wellness facility, 4,000-square-foot club room, 1,000 square feet of bike storage and electric vehicle charging stations.
Olive at Peabody Union, the residential tower, features 355 multifamily units. Residences at the tower average 1,020 square feet and include studio, one-bedroom, two-bedroom and penthouse layouts. Amenities at the tower include coworking spaces, a fitness center, swimming pool, outdoor grill stations, a wellness lounge, dog run, pet spa, movie lounge, gated parking, private storage and bike storage.
Totaling 52,735 square feet, the retail and restaurant component of the project was roughly 50 percent leased at the time of financing. Tenants include food-and-beverage concepts Moxies, Ometeo and Jeni’s Splendid Ice Creams. Each of the restaurants is scheduled to open in 2027.
PGIM is the global asset management business of Prudential Financial (NYSE: PRU).
South Florida-based Stiles Corp. has developed more than 54 million square feet of office, retail, industrial, mixed-use and residential space since its inception in 1951.
Florida-based Hensler Development’s previous projects in Nashville include residential tower The Adelicia and luxury condominium complex Twelve Twelve.
— Hayden Spiess