News Summary
Nashville’s Giarratana seeks a $360 million construction loan for the Paramount skyscraper, a 60-story residential tower. Despite facing setbacks with previous loan agreements, the company has raised substantial equity and begun foundational work. With strong pre-sale interest and a projected completion timeline of summer 2028, the project is poised to reshape Nashville’s skyline and enhance community spaces through its amenities and additions, such as a new YMCA facility.
Giarratana on Path to Secure $360 Million Loan for Nashville’s Paramount Skyscraper
Nashville-based development company Giarratana is navigating through the financial landscape to finalize a substantial $360 million construction loan for its ambitious 60-story residential tower, known as Paramount. The company originally aimed to secure this funding by the end of July, as part of its strategy to kickstart the construction of the iconic skyline addition.
Progress Toward Financing
To bolster its finances, Giarratana has recently concluded two bridge loans totaling $205 million to support its other projects, the Alcove and Prime residential towers located on Church Street. Currently, the company reports that it has successfully raised $92.7 million of the required $100 million total equity needed for the Paramount project, with efforts now focused on acquiring the remaining $7.3 million.
The construction loan will be finalized once the remaining equity is secured. This loan is set to be issued by an undisclosed subsidiary of a massive $1.6 trillion company, indicating significant market interest in the Paramount development.
Previous Loan Agreement Termination
Giarratana’s quest for financing has not been without challenges. The company terminated a previous agreement involving a $172.3 million senior loan with Bank OZK and a $60 million mezzanine loan with Related Fund Management. This decision cost Giarratana approximately $23 million but ultimately left him and his equity investors with the Paramount site free of any debt.
Market Interest and Pre-sales
As of June, momentum for the Paramount development has been building, with reports indicating that 40 future condominiums within the tower have been reserved. These pre-sales have contributed to an impressive total exceeding $120 million, showcasing local interest in the upcoming residential offerings.
Project Timeline and Features
The anticipated completion date for the Paramount skyscraper has been pushed to summer 2028, slightly delayed from the initial target of late 2027. The overall development cost of the project is estimated at approximately $460 million. Once constructed, the Paramount tower will soar to a height of 750 feet, making it the tallest building in Nashville.
Located at 1010 Church Street, the Paramount tower will be positioned in downtown Nashville, strategically near the Nashville Yards development. Construction work, including excavation and foundational efforts, is already underway, indicating a tangible commitment to the project.
Community Benefits
In addition to the residential units, the project will feature a new five-story addition to the neighboring Downtown YMCA. This addition, spanning 60,000 square feet, will enhance fitness facilities and community spaces, providing added value to residents and visitors alike.
Design and Amenities
The architectural design of the tower incorporates multiple angles of glass for a modern aesthetic, complete with a uniquely designed base, shaft, and “crown” topping the structure. The amenity offerings in the Paramount tower are set to impress, including fitness centers, lounges, co-working spaces, a pool with a terrace, private dining areas, and a dog spa.
Complex Financing Process
Giarratana’s search for financial backing included presentations to 69 lenders, highlighting the intricate nature of the capital structuring process. Despite the multifaceted capital structure posing challenges, the interest from financial institutions marks a positive sign for the ongoing development of the Paramount skyscraper.
Overall, Giarratana’s endeavor to launch the Paramount project could significantly reshape Nashville’s skyline and boost community engagement through enhanced residential and public spaces.
Deeper Dive: News & Info About This Topic
Additional Resources
- Nashville Post
- The Tennessean
- Dezeen
- Architect’s Newspaper
- Building Design+Construction
- Wikipedia: Nashville
- Google Search: construction loans
- Google Scholar: high-rise construction
- Encyclopedia Britannica: tallest skyscrapers
- Google News: paramount tower nashville
Author: Construction NY News
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