The SoBro | 32 stories 345 ft | 3rd & Demonbreun

[smeagolsfree]

Thought it would be better to start a thread on the SoBro apartment tower. I think at some point in time this will be a news maker for the board.

This is the second building to have the name “SoBro” there was another 14 story or so tower to be built on up Third Ave. by Lebanon developer Sonny Belew. Of course it never happened.

This tower would be built on the corner of Third and Demonbreun and the lot is already owned by Tony Giarratana.

Here are the renderings:

And the schematics in a PDF file:

http://giarratana.com/media/files/SoBro_Specifications.pdf

I really look for this tower to be built with the need for DT living space becoming more in demand all the time.

I think the question is a matter of financing the tower.

[smeagolsfree]

Just the sooth sayer here again. Project has shown up on construction wire.

start date 5/2012

end date 9/2014

1. Parking Structures, Residential - MultiFamily (Apartments/Condos), Universities/Colleges
   
2. Estimated Value:
   
3. Sector:
   Private
   
4. Location:
   Nashville, TN. Located on...
   
5. Construction Schedule:
   Est. Start Date: 5/2012. ...
   
   Est. End Date: 9/2014. Completion...
   
6. Details:
   
   Plans call for the demolition of the...
   

Contact Information

Owner/Tenant

Tony...

[smeagolsfree]

They are shooting for a end of year groundbreaking according to Ted Kromer with Tonys group

[nashvylle]

This building might be my favorite out of the three. I think it's more realistic that 505 CST, and it would be great to really extend our skyline, just as Pinnacle Tower has done.

[samsonh]

Obviously an attractive building, but I have my severe doubts Tony's group can get this done alone. I have to see a major partner coming in and handling most of the work(much like most of his other projects that have actually gotten off the ground)

[dmillsphoto]

I too have my doubts about Tony getting this ground broken. Last year he puts out 3 buildings, then goes silent. Nothing since. The rumors of discussion between him and Vision or whoever for the Westin came and went pretty quickly - but suffice it to say if this broke ground I'd be ecstatic.

[MLBrumby]

They are shooting for a end of year groundbreaking according to Ted Kromer with Tonys group

You mean like all those times they were going to break ground on Siggy!?

[Nathan_in_DC]

Yeah, I'm becoming very disillusioned with him. Too many grand plans like this that never see the light of day. This is a bit more realistic than others, I suppose, but at the same time...fool me once...

[nashvylle]

I agree to an extent, but Signature Tower was much more a product of bad financial timing. It's ridiculous to think Signature Tower was the only building scraped in 2007/2008...

[Nathan_in_DC]

I'm not sure Signature Tower could have been built even with the best of financial timing. The demand for such a large space in downtown just isn't there, and it's doubtful that it would be a "if you build it, they will come" situation. I'm all for pushing the boundaries, but you must be realistic at the same time.

Do we have a list anywhere of the projects he has started that were completed vs. on hold vs. pending vs. scrapped? I'm mildly curious what the ratios are, and what they are compared to other major developers in the city.

[NashRugger]

I do believe this stands a decent shot at getting built because of two things: 1) Banks are loving apartments right now. 2) The downtown/Midtown/West End markets are running at over 90% occupancy and rents are still rising.

[arkitekte]

I also think this will get built, mainly due to location and the need/want for apartments downtown. Tony G already hit it big with the Cumberland Apartments, I think he can do it again here with the SoBro.

[dmillsphoto]

I also think this will get built, mainly due to location and the need/want for apartments downtown. Tony G already hit it big with the Cumberland Apartments, I think he can do it again here with the SoBro.

It could also be a similiar situation only opposite to Velocity: going from apartments to condos when the time is right.

[MTSUBlueraider86]

These are the reasons why The Sobro will get built and The Hotel and 505CST will not get built:

The Sobro which WILL get built:

1) The need for more residential housing in the urban core.

2) Nashville is far behind peer cities in residential housing.

3) The sharp increase in rental rates.

4) Tony's expertise is in residential.

505CST which WILL NOT get built:

1) The need for a major national or international lead tenant.

2) Financing for a commercial project is more difficult.

3) He would need metro approved TIF.

4) Office vacancy rates are still around 12%.

5) Tony has not developed an office tower.

Sobro Hotel WILL NOT get built:

1) Tony has never developed a hotel.

2) He would have to deal with:

a)Hotel Operating Groups

b)Hotel Ownership Groups

c)Hotel Management Groups

d) City Land Leases

e) Hotel and Hospitality codes are different for hotels as opposed to condos and office.

3) Tony has never developed a hotel. Since he has no experience in hotel/hospitality, he would be hard pressed to get financing.

The Projects he HAS COMPLETED:

1) The Cumberland w/ a co-developer, but he may have done this on his own.

2) The Encore W/Novare.

3) Viridian w/Novare.

4) The Bennie Dillion rehab project w/Post development.

5) The Belle Meade Theater Harris Teeter/Office/residential/Apartments/Condos w/many investors. He was a MINORITY partner.

Projects under construction:

1) Park 25 w/ another partner I don't know.

Projects abandoned:

1) Signature Tower WITH NO PARTNER.

2) May Town Center as a minor partner.

Failures:

0

The Sobro makes sense because there is a market demand and banks will loan to developers with experience in what they are developing. Tony has existing relationships with those in the residential development area. He developed some strip malls while in Florida after college at South Florida.

If you look at what he has done in the CBD basically on his own not including the Bennie Dillion which was an existing building, he has done more than most. The Cumberland, Encore, and Signature Tower have set the stage for more 20-30 story residential towers, and Tony has that expertise. I can see The Sobro starting as early as September. I don't think they will wait until the end of the year and start in the winter.

Just my .02

[MTSUBlueraider86]

I recently had a thread where I documented every unbuilt project over the past 30 years. I think I stopped at close to 50, and only one of them was Tony's and that was Signature Tower.

I'm not sure Signature Tower could have been built even with the best of financial timing. The demand for such a large space in downtown just isn't there, and it's doubtful that it would be a "if you build it, they will come" situation. I'm all for pushing the boundaries, but you must be realistic at the same time.

Do we have a list anywhere of the projects he has started that were completed vs. on hold vs. pending vs. scrapped? I'm mildly curious what the ratios are, and what they are compared to other major developers in the city.

He had $100,000,000 in contracts, so it was more than "if you build it they will come..."

[dmillsphoto]

Hell of a breakdown John. As I previously stated, I will believe it when shovels are on the ground, but of the 3 I agree, this has a lot more promise to get moving. The Hotel I thought would have a chance if he goes in as a minority holder like with Belle Meade, leaving more decision making to the aforementioned list of people that need to be involved. I just hate that they are waiting until year end, those 6+ month waits can seem like forever.

[arkitekte]

Anyone want to kick around the idea of the SoBro hotel as a stunt to find a hotel chain/ investor to go into negotiations with Tony for his hotel located within 505 Church. Isn't 505 supposed to have a hotel? Yeah, I might be crazy, but I find it strange that he would propose a hotel separate from his masterpiece, which in a sense could make or break 505 if an office tenant is found, and more funding is needed. I'm probably looking way to far into this, and I'm bored today, but even the effort put forth on the renderings and even community talk for the hotel is pathetic compared to 505 and the Sobro. With the Omni and Hyatt, the hotel is a long shot, even with the need for hotel rooms.

Its just the way I'm looking at it I guess; a hotel chain would love to have its own building, but both the developer and hotel chain would have to pony up the majority if not all of the costs. Find the hotel company and tell them they could split that cost with the developer, office tenant(s), and condos or whatever else and it all begins to look better from a financial stand point, imo.

Anyways, I guess I'm just trying to create some more talk about this. Lol

Edited April 25, 2012 by arkitekte

[Nathan_in_DC]

Well alrighty then, that's a lot better than I was expecting.

I'll look forward to seeing the ground breaking and construction beginning, and I won't be holding my breath, but that's just because you never know what volatility will happen in the next few months, not because I don't think he's any more or less likely than anyone else to build a building there.

[MTSUBlueraider86]

One thing to keep in mind: He wants to break ground before Ray Hensler and Alex Palmer. Hensler may already be ready for his 20+ story tower in the Gulch, and Eakin with their two towers could be ready at some point in the future. Tony has always been more forthright about his projects than the others, but the demand in SOBRO is very high, and with the new MCC, he may have people that want to rent for months at a time. Anything is possible with Tony.

WES may get out of the ground at some point. Maybe Palmer goes apartment instead of hotel or condo? Who knows? In any case, Nashville is too small for two or three residential towers going up at once. I have the strange feeling the SOBRO may end up being condos, since 5th and Main is the LAST building in the CBD or downtown inside the loop with any available units. Icon in the Gulch only has 15 left.

Welcome to the new arms race! Its in Nashville and it involves arms on deck chairs, not weapons!

[nashvylle]

One thing to keep in mind: He wants to break ground before Ray Hensler and Alex Palmer. Hensler may already be ready for his 20+ story tower in the Gulch, and Eakin with their two towers could be ready at some point in the future. Tony has always been more forthright about his projects than the others, but the demand in SOBRO is very high, and with the new MCC, he may have people that want to rent for months at a time. Anything is possible with Tony.

WES may get out of the ground at some point. Maybe Palmer goes apartment instead of hotel or condo? Who knows? In any case, Nashville is too small for two or three residential towers going up at once. I have the strange feeling the SOBRO may end up being condos, since 5th and Main is the LAST building in the CBD or downtown inside the loop with any available units. Icon in the Gulch only has 15 left.

Welcome to the new arms race! Its in Nashville and it involves arms on deck chairs, not weapons!

I believe Ray Hensler is teaming with Eakin, i.e. Eakin is developing the office portion of 1201 Demonbreun and Hensler is developing the Apartment building.

Either way, I want the SOBRO to go up, and I agree that it's a race to see who obtains financing first.

[barakat]

The SoBro was featured in the downtown home tour last weekend, with information available at the Giarratana office on Church Street. Did anyone go?

[MLBrumby]

The SoBro was featured in the downtown home tour last weekend, with information available at the Giarratana office on Church Street. Did anyone go?

Unfortunately, talk is cheap... and while marketing should be a first step, I will believe this one when I see more than a hole in the ground. Mr. Palmer has taught us that a big mosquito pool is not a true sign of progress.

[timmay143]

Yeah, we've all learned our lesson. Heck even a partially built building isn't safe anymore. Just ask Charlotte.

If this does get built and occupy, imagine the catalyst it would produce.

[dmillsphoto]

I will say this, with news of Asurion taking over the Ragland Building where that now-defunct Canadian company was going to occupy, I have a feeling this could actually become a critical building to get approved in the eyes of Metro. 300 "new" jobs in SoBro. People could walk to work from their apartment. This might also spark something in the parking lot across from XO. I do think we have someone on here who could fill us in on that, though, yeah?

[bwithers1]

Yep. Ideally, some of those new downtown employees would be able to get apartments downtown and walk to work rather than commute in from the suburbs and pay for parking. Or is that overly practical thinking on my part?