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 for Nashville’s Paramount Skyscraper

Nashville-based development company Giarratana is in the process of securing a construction loan amounting to $360 million to kick off its ambitious 60-story residential tower, known as Paramount. Although the company aimed to finalize this loan by the end of July, it is still finalizing its financial details.

Recently, Giarratana closed bridge loans totaling $205 million for its already underway Alcove and Prime residential towers located on Church Street. Now, focus is shifting entirely to the Paramount project, with the firm’s founder reporting that $92.7 million of the $100 million in required equity has already been raised. This leaves a target of just $7.3 million still needed.

Shift in Financial Approach

This latest funding effort follows a previous loan agreement withdrawal where Giarratana had to terminate a $172.3 million senior loan associated with Bank OZK along with a $60 million mezzanine loan from Related Fund Management. The termination of that deal cost Giarratana roughly $23 million but resulted in owning the Paramount site free of debt, which offers more flexibility moving forward.

As of June, interest in the tower is already palpable with reported reservations for 40 future condominiums, combining for a total pre-sale value exceeding $120 million. The timeline for completion has shifted, with the anticipated finish date now set for summer 2028, a push from the previously expected late 2027.

Project Details

The total estimated development cost for the Paramount tower is around $460 million. When completed, it will soar to a height of 750 feet, earning it the title of Nashville’s tallest building upon completion.

Giarratana’s securing of the loan involves intricate capital structuring, showcasing a comprehensive approach by presenting to 69 different lenders. Despite generating interest, challenges arose from the multi-tiered capital structure, complicating the financing process.

As part of the ongoing effort to secure financing, Giarratana terminated their previous agreements in April to open up new financing avenues. The Paramount will find its home at 1010 Church Street, strategically located in downtown Nashville, near the rapidly developing Nashville Yards.

Construction Progress and Community Benefits

Excavation and foundational work for the tower have already kicked off. Additionally, the project includes a new five-story, 60,000-square-foot addition to the adjacent Downtown YMCA, which aims to enhance its fitness facilities and community spaces.

The aesthetic design of the tower is notable, featuring multiple angles of glass that contribute to a modern look with a uniquely designed base, a sleek shaft, and a striking “crown” at the top. Amenities will cater to residents’ lifestyles, offering various fitness centers, lounges, co-working spaces, a pool with a terrace, private dining areas, and even a dog spa.

Looking Ahead

The successful closure of the $360 million loan stands to not just invigorate Giarratana but also shape Nashville’s skyline and contribute to its development. As the company works toward finalizing its funding and the Paramount project continues to make strides, anticipation builds for the future of this remarkable residential tower.

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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