In a joint venture with Long Wharf Capital, Endeavor Real Estate Group has started construction on Phase II of Gulch Union. This is the second of three phases of a mixed-use development in The Gulch enclave of Nashville, Tenn. This phase will be a 28-story residential tower with 306 multifamily residences and 8,000 square feet of first-floor retail. It follows the development of the first, 1222 Demonbreun, a 330,000-square-foot Class AA office building with 6,000 square feet of retail.
In a prepared statement, an Endeavor Real Estate Group official reported the phases will be interconnected and offer complementary street-level activities and architecture.
The Phase II residential tower will offer a lounge with pool table, shuffleboard and bar. First move-ins are slated to take place in April 2024. The final completion of the development is expected three months later in June of that year.
“The two greatest challenges were COVID uncertainty on urban high-rise multifamily demand and rents second quarter 2020 through second quarter 2021, and construction cost escalations,” Jamil Alam, Endeavor Real Estate Group managing principal, told Multi-Housing News. “We hit pause on design until we gained greater confidence in the return of the urban high-rise multifamily demand and the rent story. And we absorbed significant cost increases in our budget that have been partially offset by lower interest rates and more aggressive yields and exit caps. With the benefit of hindsight, because the construction cost increases in the last year have been so significant, I wish we had plowed forward with design and started construction in first quarter of 2021.”
Termed Nashville’s premier urban neighborhood, The Gulch is a walkable community featuring shops, breweries, live music destinations and boutique hotels. It is situated on the Cumberland River’s western bank near downtown Nashville.