PGIM, Stiles Secure $310M Loan for Peabody Union
The bridge loan supports a 665,000-square-foot mixed-use complex in downtown Nashville, Tennessee.
Updated on Nov. 5, 2026 in Commercial
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PGIM Real Estate and Stiles and Hensler Development Group secured a $310 million bridge loan for Peabody Union, a 665,000-square-foot mixed-use complex in downtown Nashville. Blackstone Real Estate Debt Strategies issued a three-year note with two one-year extension options, with JLL negotiating the loan on behalf of the borrowers.
Why it matters
The financing supports a large mixed-use development in downtown Nashville that includes a 355-unit residential tower and office space. The project's progress reflects continued commercial real estate activity in the city.
The Peabody Union complex spans 665,000 square feet and includes a 27-story residential tower with 355 units. Retail space totals 52,735 square feet, with 50 percent of it leased, while the 249,988-square-foot office building at 50 Peabody St. has a full-building Starbucks lease.
The players
PGIM Real Estate
PGIM Real Estate is the real estate investment arm of PGIM, the global asset management business of Prudential Financial, active in commercial property lending and investment.
Blackstone Real Estate Debt Strategies
Blackstone Real Estate Debt Strategies is the real estate credit arm of Blackstone, one of the world's largest alternative asset managers, which issues commercial real estate debt.
Wells Fargo
Wells Fargo is one of the largest U.S. banks, known for providing commercial real estate construction financing across the country.
The details
Peabody Union was completed in stages, with the residential tower and Class A office building finished in 2025. Turner Construction served as general contractor and Hastings as architect of record, and the project topped out in April 2024 after breaking ground in 2022.
Timeline
2022: Wells Fargo provided a $247 million construction note, and the partnership broke ground on the project.
April 2024: The project was topped out.
2025: The residential tower and office building were completed.
2027: Starbucks is set to begin using 50 Peabody St. as its eastern corporate headquarters.
Market Context
Nashville investment activity rose in 2026 after three annual declines, with multifamily sales reaching $639 million year-to-date through July, up 21 percent from the same period in 2025. The Peabody Union financing fits this recovery in downtown and the emerging South Bank district.
For those tracking Nashville's downtown commercial space, Peabody Union adds retail and office inventory as the 50 Peabody St. building and restaurants come online. Businesses and workers in the area may see new lease and dining options once the retail spaces open next year.
The takeaway
Large mixed-use projects like Peabody Union show that downtown Nashville is attracting substantial institutional capital as the city's investment activity recovers. Readers tracking commercial real estate can watch how the retail and office components leasing up through 2027 shape the district.
What happens next
Starbucks is expected to begin using the entire mid-rise at 50 Peabody St. as its eastern corporate headquarters starting in 2027, and the retail restaurants are set to open next year.
Further reading
Explore more in the Commercial real estate section for Nashville market coverage.
Source note: This article includes information reported by 301 Moved Permanently.
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