Nashville High-Rise Obtains $105 Million Refinancing, Courtesy of Walker & Dunlop
Nashville's Booming Economy and the 805 Lea Development
Nashville, Tennessee, is currently experiencing a positive economic outlook, with strong job growth, high attractiveness for investment, and active future property development. One of the most exciting developments in the city is 805 Lea, a mixed-use high-rise in downtown Nashville.
The tech sector in Nashville is growing rapidly, with tech jobs increasing by about 17.1% recently and projected to reach 18% by 2027. Major companies like Oracle, Amazon, Dell, and Facebook are expanding their operations in the city, creating a demand for high-quality residential and commercial properties like 805 Lea.
805 Lea, completed in 2021, offers over 10,000 square feet of ground-floor retail space and 356 Class-A units. Residents enjoy high-end amenities such as a 29th-floor sky lounge, a saltwater pool, a fitness center, and 24-hour concierge service. Strategically located between the Gulch and SoBro neighborhoods, 805 Lea offers unmatched walkability, with easy access to Nashville's top dining, entertainment, and employment centers. More than 10,000 jobs are within walking distance.
The financing for 805 Lea was provided by Nuveen, a TIAA company. Marc Roth, director of Real Estate Debt Originations at Nuveen Real Estate, expressed excitement about lending on 805 Lea. Nuveen Real Estate believes Nashville's resilient and diversified economy will continue to deliver strong fundamentals for years to come, making it one of the nation's most attractive investment markets.
In 2024, Walker & Dunlop originated over $30 billion in debt financing, with more than $25 billion dedicated to multifamily properties. Stephen Farnsworth, likely from Walker & Dunlop, expressed pride in 805 Lea remaining a cornerstone in the thriving Nashville community. The financing team at Walker & Dunlop and the sponsor at Key Real Estate facilitated a swift execution of the loan in a volatile market.
Nashville's economy benefits from strong private-sector job growth, a low unemployment rate of 3.3%, rising home values, and favorable tax policies. The real estate market is competitive, with Nashville's median home price increasing by about 5% to $440,000 in early 2024, reflecting sustained demand. The entertainment industry also boosts the local economy, with productions like “9-1-1 Nashville” generating millions and expanding creative-sector jobs.
Nashville's diverse culture, high quality of life, and absence of a state income tax have attracted Fortune 100 companies and a growing population of young professionals. The city's leadership in office market absorption and rent gains among top tech hubs in North America makes it an attractive location for new developments like 805 Lea.
In summary, Nashville is a robust and growing economy with strong job creation, high investment appeal, and an active development pipeline, supporting properties like 805 Lea as future focal points for commercial and mixed-use growth.
In the midst of Nashville's thriving economy, real-estate investments like 805 Lea are attracting significant finance interest, with Nuveen, a TIAA company, providing the financing for this high-rise development. The growth in the tech sector, as well as the city's expanding entertainment industry, creates a need for premium mixed-use properties like 805 Lea, making Nashville an attractive market for investing in real estate.
