Giarratana Pursues $360 Million Loan for Paramount Tower

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 Seeks $360 Million Construction Loan to Launch Paramount Skyscraper Development in Nashville

Nashville’s skyline may soon see a dramatic transformation as local development company Giarratana seeks a construction loan of $360 million for its ambitious project known as Paramount. This proposed 60-story residential tower is designed to be the tallest building in Nashville, standing at an impressive 750 feet when completed.

The developer’s previous goal was to secure this financing by the end of July, marking a pivotal point in the development timeline. Giarratana has already made strides by closing bridge loans totaling $205 million for its other projects, the Alcove and Prime residential towers located on Church Street.

To fund the Paramount project, Giarratana has successfully raised $92.7 million out of the $100 million total equity needed, though they are still in search of the remaining $7.3 million. Once this equity gap is filled, the construction loan can be finalized with an undisclosed subsidiary of a substantial $1.6 trillion firm.

These efforts to secure funds come after a previous agreement was terminated, which involved a senior loan of $172.3 million with Bank OZK and a $60 million mezzanine loan from Related Fund Management. Terminating this deal required an upfront cost of $23 million, but it ultimately left Giarratana and his equity investors without debt on the Paramount site.

As of June, the project has seen positive market response with 40 future condominiums at the Paramount already reserved, totaling pre-sales exceeding $120 million. The anticipated completion for the project has been pushed to the summer of 2028, a delay from the initial target of late 2027.

The overall estimated cost for the Paramount development is approximately $460 million and will include around 360 apartments, 140 condominiums, and a 517-space parking garage. Its location at 1010 Church Street places it strategically near the ongoing Nashville Yards development, enhancing its appeal to future residents.

In terms of design, Paramount is characterized by a modern aesthetic with multiple angles of glass, a uniquely structured base, shaft, and an elegant crown at the top. The amenities offered will cater to diverse tastes with options like fitness centers, lounges, co-working spaces, a pool with a terrace, and even a dog spa.

Construction work has already commenced, specifically focusing on excavation and foundational efforts for the tower. In addition to the skyscraper, the project includes a significant 60,000-square-foot addition to the neighboring Downtown YMCA aimed at enhancing community fitness facilities and public spaces.

Throughout the financing process, Giarratana’s capital structuring has faced challenges. This complex endeavor required presentations to 69 lenders, where despite interest, securing an agreement proved difficult due to the multi-tiered nature of the capital structure.

In light of their recent complications with previous loans, Giarratana’s decision to seek alternative financing options has positioned them to eventually move forward with the transformative Paramount project. As the project progresses, it is hoped that it will significantly contribute to Nashville’s urban landscape and provide new living options in the thriving downtown area.

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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