Dive Brief:
- Developers OliverMcMillan and Spectrum|Emery announced that construction on their $430 million mixed-use development in Nashville — anchored by the National Museum of African American Music — will begin in spring 2017, according to Commercial Property Executive.
- This Fifth + Broadway complex will be built on the site of the former Nashville Convention Center and will include 183,000 square feet of retail space, 350 residential units, a 375,000-square foot Class A office tower and a parking garage.
- Developers will also increase convention and meeting space capacity at a nearby hotel as part of what developers are referring to as the biggest mixed-use project in downtown Nashville. The entire project is expected to be complete in 2020.
Dive Insight:
Nashville development has taken off in recent years, as the city has become a hot secondary market. Early last month, social networking website Bigger Pockets named the city as one of the 10 U.S. markets where investors can expect the biggest returns on residential real estate.
Zillow also reported that Nashville has seen an influx of renters looking for affordable in a city with strong economic growth. However, prices in Nashville and other cities drawing in bargain hunters are expected to rise as supply tightens.
Nashville has always been a popular tourist destination due to the country music industry, but an increase in visitors and residents has taken a toll on the city’s infrastructure. To accommodate the extra traffic, Metropolitan Nashville Airport Authority officials announced in August a five-to-seven-year, $1.2 billion overhaul of Nashville International Airport. The facility is in line for a new lobby, parking, concourse and screening lanes and could also see construction of a new hotel. Airport officials said Nashville taxpayers will not foot the bill. Instead, federal and state grants, passenger user fees, bonds and other sources will pay for the project.
