Downtown Peabody Union Secures $310M Loan

A $310 million financing package for the Peabody Union development in downtown Davidson County has been finalized.

The funds cover a three-year bridge loan with two one-year extension options. Blackstone Real Estate Debt Strategies provided the capital. The borrower is a joint venture between PGIM, Stiles, and Hensler. JLL’s capital markets debt advisory group served as the exclusive advisor to the borrower on the transaction.

Peabody Union is a mixed-use project located in the area locals call South Bank. Construction was completed in 2025. The development includes a 27-story residential tower with 355 units named Olive. It also features a six-story building with 250,000 square feet of Class A office space. Approximately 52,735 square feet of retail and restaurant space is included in the project.

Starbucks Corp. will lease the entire office building at 50 Peabody St. The space will serve as the company's Eastern headquarters. Ed Coco, Senior Managing Director at JLL, stated that the project combines high-quality construction with a major office lease commitment. He noted that the firm received strong interest from various lender types.

The retail spaces within the office building and apartment tower are currently 50 percent leased. Three new businesses are scheduled to open in 2027. These include casual eatery Moxies, the Tex-Mex restaurant Ometeo, and Jeni's Splendid Ice Creams. JLL is headquartered in Chicago and staffed the deal from offices in Atlanta and Miami.