Nashville's East Bank development broke ground on phase two this week with $4.7 billion in committed capital across multiple developers. Phase one delivered 1,847 multifamily units and 1.2 million square feet of commercial space across 2024 and 2025. Phase two moves the project from the riverfront edge into the central core east of the Cumberland River and adds 8,400 housing units, 2.4 million square feet of office and retail, and a 4,200 seat performing arts venue. The total committed capital across all phases reached $14.2 billion as of April 30.
The lead developer on phase two is The Bedford Group, a Dallas based partnership that won the Metro Nashville development rights through the 2024 master developer process. Bedford's capital stack includes $1.8 billion in equity from CalPERS, the New York State Common Retirement Fund, and a Sovereign Wealth Co Investment Vehicle managed by Goldman Sachs. The debt portion runs $2.9 billion across senior, mezzanine, and bridge facilities. Wells Fargo and JP Morgan are co lead lenders on the senior tranche.
Housing affordability commitments structure the project differently from most Sun Belt megaprojects. The agreement with Metro Nashville requires that 15 percent of all delivered units fall within 60 percent of the area median income. Another 10 percent must serve workforce housing between 80 and 120 percent of area median income. The combined affordable housing commitment of 25 percent of units is the highest of any major Nashville development since 2010. The total affordable unit count across phase two will reach 2,100 units by completion.
Nissan Stadium reconstruction is the anchor project that started the East Bank momentum in 2023. The new stadium is on schedule for the 2027 NFL season opener with construction now at 71 percent completion. Phase two construction will run alongside stadium completion and the timing creates supply chain coordination challenges that the development team flagged in March. Concrete and structural steel availability through Sun Belt fabricators is the most cited bottleneck, with delivery windows running 14 to 22 weeks for major orders.
Commercial pre leasing on phase two reached 47 percent of available square footage as of April 30. The largest signed tenant is HCA Healthcare, which committed to 480,000 square feet of office space across two buildings for delivery in 2028. AllianceBernstein, which moved its headquarters to Nashville in 2020, committed to an additional 187,000 square feet to expand its existing footprint. Bridgestone, Asurion, and Captain D's all signed letters of intent for spaces in the 80,000 to 120,000 square foot range.
The retail strategy differs from suburban Nashville development. The phase two retail mix is 60 percent local and regional operators, 25 percent national chains, and 15 percent food hall and pop up rotation space. The lead retail consultant is Streetlights Residential, which structured the same model in Dallas Trinity Groves and Atlanta Ponce City Market. Local restaurant operators include Hattie B's expansion location, Prince's Hot Chicken, Rolf and Daughters, and a new concept from Sean Brock that has not been publicly named.
Capitalization rates on Nashville multifamily traded at 5.2 percent in the first quarter according to Real Capital Analytics, the lowest in the Sun Belt. Investor demand for completed phase one assets has been strong. Greystar paid $412 million for one phase one asset of 1,847 units at a 5.3 percent cap rate in March. Brookfield purchased a 1,200 unit asset at $287 million at a 5.4 cap. Phase two pre development pricing assumes stabilization caps in the 5.4 to 5.8 range based on rent growth assumptions of 3.4 percent annually through 2030.
The build to rent component is concentrated in the southern portion of phase two. Pretium Partners is developing 612 single family rental units on a 47 acre parcel that breaks ground in June. Yield on cost expectations run 6.4 percent against a 4.8 to 5.2 percent expectation for traditional multifamily. The rental product targets families priced out of for sale Nashville and runs three and four bedroom plans averaging 2,200 square feet. Pretium's involvement signals confidence that the East Bank can support family oriented rental product, which has been thin in the urban core.
The transit and parking question is unresolved. Phase two relies on bus service expansion that requires Metro Council approval of a transit funding measure on the November ballot. If the measure fails, the project carries 4,200 dedicated parking spaces in two structured garages, which is below the typical Nashville commercial ratio. The development team built the parking shortfall into the financial model on the assumption that transit infrastructure will arrive in time. The bet is significant and the November vote is the next major milestone for the entire project.