Nashville Business Journal

The Nashville-based development firm landed $475 million in construction financing for Belle Meade Village, a 15.5-acre mixed-use development on the site of the former Belle Meade Plaza, according to a news release.

It's one of the largest construction loans ever secured for a Nashville project and was provided by Charlotte-based Barings, one of the world's largest real estate management firms. The new financing supports the construction of the retail and residential structures of Belle Meade Village, as well as leasing and tenant improvement costs for the retail portion of the development, according to the release.

Developers have struggled to find commercial financing in recent years, with high interest rates and an unstable economic environment. Many banks have pulled back on commercial lending, but AJ Capital has landed two other construction loans in recent months, totaling $250 million, for its Wedgewood Village development in Wedgewood Houston.

The $475 million financing deal for Belle Meade Village tops other notable construction loans secured in Nashville in recent months like Tony Giarratana's $340 million loan for the 60-story Paramount tower, SomeraRoad's $253 million loan for Pendry Nashville, IPB Properties' $208.4 million loan for The Motley and Tidal Real Estate Partners' $265 million in financing for the Nashville Edition.

Set to open in 2028, Belle Meade Village will offer green space, public walkways, and a central courtyard anchored by an antique carousel, as well as dozens of new storefronts, luxury residences, and a boutique hotel. "Belle Meade Village will redefine the gateway to one of Nashville's most established neighborhoods, turning an underutilized site into a community-driven destination that will become part of our city's fabric for years to come," said Ben Weprin, CEO of AJ Capital Partners, in the release. "True to our approach, we are using the neighborhood's history as our guide to create an authentic destination that both enhances the surrounding area and becomes a meaningful part of its future."

Sales for the development's luxury condo buildings, called 1 Iris Lane, opened three months ago, with 40% of units now pre-sold. 1 Iris Lane will offer 16,000 square feet of amenities, including a library, piano room, golf simulator, whiskey and cigar rooms, as well as private mahjong and poker rooms. Other amenities include a pilates studio, sauna, spa, private pool and cabanas and a cold plunge, among others.

Belle Meade Village's retail square, which will be comprised of seven two- and three-story buildings, will offer more than 40 storefronts, which will include local and global retailers, restaurants, a boutique hotel, a member's club, and health and wellness offerings. The retail development will overlook 6 acres of public green spaces, including a greenway along Richland Creek.