Endeavor Real Estate Group is ready to break ground on the residential portion of Gulch Union, its three-phase development in the Gulch. The move has been years in the making.
Second-phase work, slated to begin this month, will create a 28-story, 306-unit apartment tower with street-level retail space, according to a news release. The project is a joint venture between Austin-based Endeavor and Boston-based Long Wharf Capital.
Gulch Union’s first phase, office building 1222 Demonbreun, opened in December 2020. But Endeavor had paused many of its development plans throughout that year due to Covid-19, managing principal Jamil Alam told Nashville Business Journal, and only started to dust them off the following April — hence the longer wait time for the second phase.
“In hindsight, because we’ve seen construction costs run so much in the last year, I think we would have been better off plowing forward and starting construction a year ago. But we are where we are,” he said.
After the residential tower, designed by Dallas firm HKS Inc., finishes out in 2024, the master development’s final phase will ensue. It’s unclear what those third-phase plans will entail, but Endeavor’s website lists possibilities like a boutique hotel or additional retail and apartments.
When complete, the mixed-use development will span the city block between 12th and 13th avenues, bounded by McGavock and Demonbreun streets. The site falls in the center of Nashville development targets like the Gulch, Midtown and Music Row.
Alam said he’s seen potential in Nashville for years. But his confidence has only grown with the increased presence of high-paying companies like Amazon, AllianceBernstein and Oracle. Now, Alam says, the city is poised to outperform even traditional “gateway” markets like San Francisco and Chicago.
This is largely because more employees are opting for highly educated, but low-tax, cities with a good quality of life, Alam said. Plus, the real estate market as a whole has recovered enough to “justify new construction” and secure loans (IBC Bank is providing construction financing for the residential tower, though Alam declined to state a project cost).
Other projects within Gulch Union’s half-mile radius include Nashville Yards, GBT Realty Corp,’s coveted Beaman development site, Hines’ proposed Reed District project, Endeavor’s own Whole Foods Market tower (which recently sold for $295 million), Highwoods Properties’ proposed Gulch Central and various others.
Gulch Union’s new tower will house amenities like a rooftop pool, fitness studios, co-working space, lounge, outdoor dining and more, according to the release.
Endeavor spent $12.84 million on its project site in 2018, according to Metro records.