Jump to content

BROADWEST (former West End Summit), 36 story Conrad Hilton Hotel/condo tower, 22 story/510,000 sq. ft. office tower, 4 story/125,000 sq. ft. retail/office, 1 acre plaza, 2,500 car garage, $490 million


it's just dave

Recommended Posts

So now that AP has all the financing in place, what else could there be to hold this project up? To me, having secured the funds to start construction means the only thing left to do is start construction right?

 

I don't see how a 1.8 million dollar lien on a 250 million dollar project could delay things much. Surely that was taken care of in part of the financing deal no?

 

I just don't see how this is anything other than a go. No more begging banks for money, no more trying to sell this to partners/investors, no more work to be done other than starting construction. Am I wrong on this?

 

Isn't securing financing the last step developers need to start building? What else is there left to do...

Link to comment
Share on other sites


So now that AP has all the financing in place, what else could there be to hold this project up? To me, having secured the funds to start construction means the only thing left to do is start construction right?

 

I don't see how a 1.8 million dollar lien on a 250 million dollar project could delay things much. Surely that was taken care of in part of the financing deal no?

 

I just don't see how this is anything other than a go. No more begging banks for money, no more trying to sell this to partners/investors, no more work to be done other than starting construction. Am I wrong on this?

 

Isn't securing financing the last step developers need to start building? What else is there left to do...

HCA I think has last say I think.

Edited by nashvylle
Link to comment
Share on other sites

Why is building this building about more than making money? I am sure he would like to get accolades for an awesome building, but I am pretty sure his first priority is getting paid. As it should be.

 

His company does not need to save face. He obviously has left quite a mark on this city already.

 

If this were a new proposal, I would absolutely agree with the first line. He does need to make money. But he also needs to prove he can close the deal. If getting this project going means taking somewhat of a hit on the profit side of things, he should do it...because he's losing money every year that property lies undeveloped.

 

 

And yes, his company most certainly needs to save face. At this point, he's known more for that giant pimple of a hole scarring Nashville's teenage face than he is for any of his other projects.

  • Like 2
Link to comment
Share on other sites

So now that AP has all the financing in place, what else could there be to hold this project up? To me, having secured the funds to start construction means the only thing left to do is start construction right?

 

I don't see how a 1.8 million dollar lien on a 250 million dollar project could delay things much. Surely that was taken care of in part of the financing deal no?

 

I just don't see how this is anything other than a go. No more begging banks for money, no more trying to sell this to partners/investors, no more work to be done other than starting construction. Am I wrong on this?

 

Isn't securing financing the last step developers need to start building? What else is there left to do...

That financing is probably contingent on having the SCRI and Parallon leases signed. If HCA has decided to go elsewhere for their offices then that financing isn't there.

Link to comment
Share on other sites

So now that AP has all the financing in place, what else could there be to hold this project up? To me, having secured the funds to start construction means the only thing left to do is start construction right?

 

 

Well, the article doesn't say all the financing is in place.   It says AP has secured an equity partner, which from what I can discern from the reports has been the issue.   Most projects of this nature are financed with a combination of debt and unsecured or subordinated equity (plus financial incentives from Metro).    Debt will be provided by a consortium of banks (led by SunTrust in this case).    I'm not familiar with the specifics of AP's deal, but I take it there have been concerns about the ability of the current equity investor(s) to meet their obligations.   Getting TAP on board would be a major step in the right direction, but now the details of the debt and equity components must be negotiated among the banks and the investors, not to mention securing tenants which is a condition to funding.    

 

I tend to agree that the announcement is a signal to the market that the patient is not dead, although probably not off life support. 

Link to comment
Share on other sites

In the NBJ article, it said that he landed financing. I guess I took that as financing is now secured. Like smeagols said above he already had 70% of the financing in place, so I would assume this new equity partner has taken care of the rest. Who know's...

 

Hopefully now that he has a partner in this, and if this gets built, maybe he won't have to compromise on the design going from all glass to pre cast concrete and glass.

 

Guess we will find out soon enough. I really can't see this being delayed much longer if it's really going to happen.

Edited by mirydi
Link to comment
Share on other sites

I can see a major urban retailer here. They would have more than adequate underground parking, and room for several retail stores especially if they built up. This area could be like Lennox Square in Atlanta. Not far from the Gulch. Not far from Vanderbilt and Belmont. Even if the towers are not built, this is a premium lot for someone. Something will go here at some point.

Edited by Urban Architecture
  • Like 3
Link to comment
Share on other sites

[quote name="Urban Architecture" post="1285756" timestamp="1386778450"

I totally agree. Easy interstate access is a plus as well imo.

I can see a major urban retailer here. They would have more than adequate underground parking, and room for several retail stores especially if they built up. This area could be like Lennox Square in Atlanta. Not far from the Gulch. Not far from Vanderbilt and Belmont. Even if the towers are not built, this is a premium lot for someone. Something will go here at some point.

Link to comment
Share on other sites

I am sure Beaman is waiting for the right offer… you are correct, his properties would make for a heck of a development(s).

 

I'm just wondering what it will take to get Beaman out of that area and allow some real urban growth to take shape.  That entire area from the interstate to at least the Broadway / West End split is perfect for major development.  A car lot is such an underuse of that land.

Edited by Guest
Link to comment
Share on other sites

I wouldn't be 'shocked', but I think at least one of them will end up moving in the next several. It looks like Metrocenter is becoming more of a hub for the 'downtown' car dealerships. Car dealerships seem to work well in close proximity to one another. With Jim Reed having changed ownership, and the Mazda dealer not having a long history downtown, I can see those two being easier to move. Beaman will probably stay until he can squeeze another zero out of the check for the land.

Link to comment
Share on other sites

I'm just wondering what it will take to get Beaman out of that area and allow some real urban growth to take shape.  That entire area from the interstate to at least the Broadway / West End split is perfect for major development.  A car lot is such an underuse of that land.

 

I would like to see urban growth take place here as well.  I also agree that the whole split area would be great for major development.  But I also believe we should worry more about developing the lots that developers already own before we start wondering what it will take to move a solid tax paying businesses out.  WES, Buckingham, Northwestern Mutual, half the Gulch, half of SoBro and many more are just sitting there with a plan and little to no action.

 

I am sure Beaman is waiting for the right offer… you are correct, his properties would make for a heck of a development(s).

 

 

What makes you sure of this?  He has a very successful and profitable family owned business, which also happens to be his passion.  Lee is already very wealthy, I think its a reach to assume he's sitting there waiting for an offer.

 

He could make a lot more developing the property than he could selling cars. I think he has about 19 acres including the property off of 12th on the other side of 40.

 

You may be right but this is a moot point because he sells cars and car parts, he's not a real estate developer.  You could say the same for many businesses that own their land.  When the business is clicking on all cylinders I think it'd be a rare thing for them to decide one day that they should uproot their business because a nice mixed use development would be very successful in its stead.  When the Hippodrome lot came to market it was bought not by a developer but by another car dealer.

 

I wouldn't be 'shocked', but I think at least one of them will end up moving in the next several. It looks like Metrocenter is becoming more of a hub for the 'downtown' car dealerships. Car dealerships seem to work well in close proximity to one another. With Jim Reed having changed ownership, and the Mazda dealer not having a long history downtown, I can see those two being easier to move. Beaman will probably stay until he can squeeze another zero out of the check for the land.

 

Unless you know Lee Beaman personally, I think this is an unfair assumption.  A guy who buys 800 acres and donates it as a park doesn't necessarily strike me as someone who's trying to squeeze out zeros.  The guy donates boat loads of his own money for all sorts of different things.  We may or may not agree with what he chooses to back but it's baseless to say he's trying to squeeze out zero's for the land where he operates his family business.

 

Its also makes zero sense to say the Mazda dealer would move sooner because they bought the land more recently. 

 

Now having said all that, I'd be elated if they all decided to sell their land move to Metrocenter.  I'd love to see the whole area around the split developed into a massive mixed use neighborhood and I believe it will happen in time.  But in the meantime maybe we can start with a couple of these proposals where the land is just sitting vacant.

  • Like 1
Link to comment
Share on other sites

TMcKay9...I don't think anyone is trying to say Beaman is a bad guy...or that any of us want him to destroy his business to give up that land for a different business.  Most of us are just daydreaming about what that property would be like with more of a "downtown" feel and possibly something with more of a mixed-use and urban activity.

 

I doubt anyone here ever wants to see him forced out for any reason...or wants him to move and lose a portion of his business.  When I say "what will it take"...I'm wondering more about what would it take for Mr. Beaman to be enticed to move.  Maybe there is no price...monetary or otherwise.

Link to comment
Share on other sites

Unless you know Lee Beaman personally, I think this is an unfair assumption.  A guy who buys 800 acres and donates it as a park doesn't necessarily strike me as someone who's trying to squeeze out zeros.  The guy donates boat loads of his own money for all sorts of different things.  We may or may not agree with what he chooses to back but it's baseless to say he's trying to squeeze out zero's for the land where he operates his family business.

 

Its also makes zero sense to say the Mazda dealer would move sooner because they bought the land more recently. 

 

Now having said all that, I'd be elated if they all decided to sell their land move to Metrocenter.  I'd love to see the whole area around the split developed into a massive mixed use neighborhood and I believe it will happen in time.  But in the meantime maybe we can start with a couple of these proposals where the land is just sitting vacant.

 

I don't necessarily mean it as a pure greed type thing...but it's generally a good business practice to get the most possible for your money. He owns the land, so he has the right to stay or leave, obviously.

 

I mean it more as people associate Beaman as a downtown dealership. He has a very loyal following. That is the prime location. Right now, that location probably means more than what he could get for the land. In 10 years, or more, it may not. The name recognition is also important. That's why I suggested that Beaman would have more incentive to stay. The Hyundai dealership (formerly Jim Reed) does not have the sort of association with downtown that Jim Reed had. So presumably it would be less costly from an image standpoint to move the dealership. With Beaman, that has long been associated as *his* spot. I'm not saying it would be a negative if he moves, but that dealership has some longstanding ties to the location. I'm simply saying that if I were to pick from the 3, I think Beaman would move last, and I think it would take a helluva offer to make him do so. I know negative things have been said about him in some other threads (such as the transit thread)...my comment about him "squeezing another zero out" wasn't meant as a negative, though I can see how it could seem so. Take away the fact that it is Lee Beaman. Take away that it is a car dealership. Think of him as a land owner. Wouldn't you, as a land owner, want to get the most value out of your land? There is tremendous value in that location for him, so again, I think the offer for the land has to exceed the value of the location for his business. And I don't know what figure he puts on that. Heck, it's possible that he would want to stay, and consolidate the land...sell off some and keep his prime spot.

 

My comment about the Mazda dealership is purely speculative, I'll admit. But consider it is on the downtown and Gulch side of the interstate. It also doesn't have quite as much space. Downtown Nashville Nissan moved from that spot, presumably because they could put more cars on a lot in Metrocenter than they could there. If a developer approached the Mazda dealer with a good offer, I could certainly see it being the first to move.

Link to comment
Share on other sites

TMcKay9...I don't think anyone is trying to say Beaman is a bad guy...or that any of us want him to destroy his business to give up that land for a different business.  Most of us are just daydreaming about what that property would be like with more of a "downtown" feel and possibly something with more of a mixed-use and urban activity.

 

I doubt anyone here ever wants to see him forced out for any reason...or wants him to move and lose a portion of his business.  When I say "what will it take"...I'm wondering more about what would it take for Mr. Beaman to be enticed to move.  Maybe there is no price...monetary or otherwise.

 

I understand and I also understand that these forums are partially for daydreaming.  I'm not a fan of debating on the forum and I don't want to come across as argumentative.  I just feel like unfair assumptions are sometimes made about business owners (Lee Beaman being at the top of the list) and developers. 

 

As far as what it would take.  I believe it would take Lee deciding at some point that selling the land to be developed would be the right thing to do for the city of Nashville.  From his track record he seems to do things because he feels like they are the right thing to do.  Things we might not all agree with but he's definitely a man of his convictions.

Link to comment
Share on other sites

I've said it before and I think most of us would agree;

I'm perfectly fine with Beaman staying on Broadway, in the sense of having an urban style showroom. Just not all the acreage for inventory.

If the dealers would build a 2-3 story showroom, that fronts the street and then sell off the rest of the land for development, I see it as a win-win. They could have a reasonable selection of each model in the showroom and then while taking a test drive, go to the remote lot where you can see all the similar models in every color and trim package, while making a fortune off the land and allowing development to happen.

Just my $.02

  • Like 4
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...

Important Information

By using this site you agree to our Terms of Use and Privacy Policy. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.