A joint venture of PGIM, Stiles Corp. and Hensler Development refinanced Peabody Union, a new mixed-use tower in downtown Nashville, Tenn., with a $310 million bridge loan from Blackstone’s real-estate debt business.
Blackstone Real Estate Debt Strategies provided the loan, which has a three-year term and two one-year extension options. A JLL Capital Markets team led by Ed Coco and Paul Stasaitis arranged the financing for the ownership group and said the deal drew interest from a range of lender types.
A finished tower with a marquee tenant
Completed in 2025, the 27-story project at 30-50 Peabody St. sits in the South Bank district along the Cumberland River and totals about 665,000 square feet. It includes 355 apartments operating as Olive at Peabody Union, nearly 250,000 square feet of offices and about 52,700 square feet of shops and restaurants.
Starbucks Corp. has leased the full office component and plans to move in during 2027, using the space as an East Coast hub. The retail space was roughly half leased when the loan closed, with several food and beverage tenants signed. Office space backed by a single investment-grade tenant has become one of the easier commercial properties to finance as lenders remain cautious on the sector.
Private credit fills the gap
The deal is another example of private lenders such as Blackstone stepping in with large floating-rate bridge loans on newly built properties that have not yet stabilized, giving owners time to finish leasing before seeking long-term debt. HERE Nashville reported the refinancing for local readers, noting Hensler’s earlier Nashville projects, The Adelicia and Twelve Twelve.
For more local business coverage, see HERE Nashville Business.
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