This article originally appeared in the Nashville Business Journal.
Yes, another apartment project is beginning in Nashville — propelling the region to a flurry of construction activity on par with its all-time record.
Hoar Construction officially broke ground on the 10-story Aspire Gulch complex at 805 Division St., the company announced first to the Business Journal. Houston-based The Dinerstein Cos. is the developer behind the 360-unit project, backed by a $91 million loan from Citizens Bank (NYSE: CFG).
The work is the latest sign that the Covid-19 pandemic only momentarily sidelined apartment construction in the region. Apartment developers have finalized $450 million of construction loans since the pandemic began, a tally that only includes Davidson County developments and not others such as the $65.5 million loan Boyle Investment Co. tapped for its Berry Farms project in Franklin or Wood Partners’ newly announced Alta Depot community in Smyrna.
As of June, builders were creating 13,500 apartments across the Greater Nashville region, according to a CoStar Group analysis. That volume is neck-and-neck, or even ahead of, peak construction activity seen in 2016 and 2017.
The ongoing construction equates to 10.4% of the region’s existing supply of apartments. Among metro areas with a population of 1 million or more, only Miami boasts a greater percentage.
The Aspire Gulch building isn’t set to open until June 2022. Dinerstein, and many other developers, hope and expect the virus to be under control by then and that Nashville will again experience the kind of growth that was happening before the pandemic hit.
Two crawler cranes, which can be moved around a job site, will be used to build the project. Construction will require approximately 450 workers.
“Hoar is excited to expand our footprint in the Nashville region, which will continue to be a top focus for us in the decade ahead as we cultivate new opportunities in a variety of real estate sectors,” said Philip Shepard, project manager at the Birmingham-based company.