Albion Scores $102M Loan for Nashville Resi Project

Albion Residential has finally secured the funds needed to proceed with two-tower development in Nashville’s Midtown.

The Chicago-based firm secured a $102 million construction loan from California-based Pacific Life Insurance, propelling its plan to build a pair of apartment high-rises with a total of 850 units, near Music Row, the Nashville Business Journal reported. Construction is set to begin this month. The loan amount comes to $120,000 per unit.

Albion bought the 2-acre site, at the intersection of McGavock Street and 14th Avenue, for $31 million in June 2023, with plans to start construction last year. It’s unclear if lack of financing was the sole reason for delaying the project, but tight lending standards and high interest rates have hindered developments across much of the nation since last year.

The project, dubbed Albion Music Row, will feature a 29-story tower with 458 units and a 20-story building with 392 units. It’s also slated for ground-floor retail, along with a 25,000-square-foot public park with art installations and performance space.

Floor plans will comprise micro units, studios, one-bedroom units, two-bedrooms and three-bedrooms. The buildings will include amenities such as gaming centers, fitness studios and rooftop pools.

Albion Music Row marks the developer’s second project in Music City. Last year, the firm delivered a 20-story, 415-unit apartment building in Nashville’s Gulch neighborhood, roughly two years after receiving an $87 million construction loan for that project.

The firm also owns a 252-unit complex in Murfreesboro — about 40 minutes south of Nashville — with plans to redevelop it to create another 108 units.

Despite a tight lending climate, several Nashville developers have secured funds as of late. Tony Giarratana recently scored $232 million in construction financing for a 60-story condo and apartment tower near downtown’s YMCA, which is set to become Nashville’s tallest structure.

Last week, New York-based Tidal Real Estate Partners received a $120 million loan from J.P. Morgan and Naftali Credit Partners to refinance the 380-unit apartment complex at 1111 Church Street, in the Gulch.

—Quinn Donoghue