Standard Assembly, is one of Wedgewood Houston’s newest mixed-use, multifamily communities and is now officially open. The project is co-developed by HY Ventures, Wedgewood Avenue, and Atlas Real Estate Partners. Designed by local architecture firms EOA Architects and Manuel Zeitlin Architects, the project consists of 310 apartments across its two newly constructed buildings and one adaptive reuse building. The community features over 12,000 square feet of retail space, 11 live/work units and multiple gathering areas and amenities. Standard Assembly is located at 715 Merritt Avenue.
“Built in an area with a history of artistry and innovation, Standard Assembly hopes to foster creativity and local businessfor Nashvillians, new and old, as we join the Wedgewood-Houston community”…
Beau Fowler, principal at Wedgewood Avenue.
“When designing and constructing a new community, we aim to seamlessly integrate with an area’s past while evolving the neighborhood’s future. Through our collaborations with local partners such as Moto Moda, Peck Design Associates, Manuel Zeitlin Architects, EOA Architects and Hardaway Construction, we’ve prioritized that objective and added value to this distinctive neighborhood.”
said Alex Foster, Managing Partner at Atlas Real Estate Partners.
Standard Assembly offers residents a mix of studio, one, and two-bedroom apartments with leases starting at $1,624/month. Each unit features timeless herringbone flooring, beautiful backsplashes and a carefully curated selection of finishes that are anything but standard.
Building The Vision
The infill of Wedgewood-Houston had been in the works for quite some time. However, the introduction of Opportunity Zones served as the catalyst that sparked the transformation we see today not only in Wedgewood-Houston, but much of the Nashville Urban core. CityNowNext asked the developer how much of a role Opportunity Zones played in pursuing this project, this is what they had to say,
“Aside from long-term fundamentals, the OZ designation was one of the main reasons we were attracted to the opportunity (we currently only develop within OZ’s) and was a major driver for our predominantly high net-worth investor base. With 100% of our investors using qualified gains to invest, the OZ designation allowed us to attract the right long-term capital to a great development opportunity despite it being a bit pioneering at the time. We continue to raise capital for shovel-ready OZ deals in select high-growth markets across the Southeast”.
During the pre-development phase of the project, market conditions were slightly more predictable and access to capital was met with less resistance. CityNowNext asked the developer what the key ingredients were to get buy-in from investors during that time; this was their recipe:
“Strong Market Fundamentals: At the time (and still), Nashville was one of the fastest-growing cities in the country. Nashville was and is experiencing a rapid population and office job boom and continues to be well-positioned for long-term growth. Given the combination of catalytic projects that were poised to announce, the great access to downtown, and large sites / former industrial properties ripe for redevelopment and/or adaptive reuse, we and our investors believed WeHo was primed to be a unique, walkable neighborhood. This has played out over the past 4+ years as WeHo has transformed into one of the most exciting neighborhoods in all of Nashville.”
“Attractive Basis: The Property was sourced in 2018 prior to the announcement of several major projects that have transformed the Wedgewood-Houston neighborhood–including Apple Music, SoHo House, and the Nashville SC stadium. Getting in early enabled us to purchase the property for ~$70 per land SF ($28k/unit), which was a discount to similarly situated sites in the Nashville market”.
“Qualified Opportunity Zone Benefits: The property’s location within a QOZ provided investors with significant tax benefits including a 15% step-up in basis, deferral of invested qualified gains through 2026, and the elimination of the capital gains upon a sale in 10+ years”.
Those key ingredients resulted in a exceptional mixed-use community and will have a direct positive impact for the livability of its residents. Amenities throughout the three-acre campus includes a resort-style pool, a large fitness center, various co-working layouts, private courtyards, a dog park and spa, a bike room, a spacious two-story clubhouse and a future rooftop space with views of the downtown skyline and Wedgewood-Houston.
In addition to the apartments located throughout the north and south buildings, the community features live/work units that are legally zoned for business and residential use and give residents the flexibility to make and sell their goods or host client meetings from the comfort of their homes. These units are equipped with polished concrete floors, 11-foot ceilings and private street-level entrances with individual addresses.
“Celebrating the culture of Makers and Creatives in Wedgewood Houston, which began with the unique collaboration between MZA,EOA and HPI as a unified local design team who worked closely with the project’s developers to respond to this specific place and time”.
Manuel Zeitlin, AIA, LEED AP, Principal, Co-Owner of Manuel Zeitlin Architects
“The site was previously used for industrial storage surrounded by a creative community. The outdoor spaces pay homage to the site’s past life while meeting the overall project goals of embodying and embracing the character of the neighborhood. Ownership had a clear vision from the start of the project that echoed Wedgewood Houston’s spirit.”
Seth Crawford, Associate – Hawkins Partners
Standard Assembly’s connection with local businesses sets it apart from many other developments in Nashville. Standard Assembly is actively establishing new relationships with local companies in Wedgewood-Houston to drive support for its residents and the growing community. The project brings fresh opportunities through its five distinctive retail spaces and living alley. Mota Moda, a lifestyle brand centered around the Nashville motorcycle scene, functional fashion and arts, has already committed to occupy one of the adaptive reuse spaces.
Looking To The Future
Following the come-back from the pandemic, which was met with rising construction costs, material & labor shortages, and now higher interest rates; CityNowNext asked the developer if they still consider Nashville to be a good market for investment? If so, what are some of the keys to successfully managing these challenges? This is what they had to say,
Yes, we believe in Nashville and WeHo in particular, remains an attractive market for long-term investment. In fact, we’re under construction on Westerly House, a 246-unit apartment community located directly adjacent to Standard Assembly. In order to manage the challenges posed by higher interest rates and construction costs, we’ve taken the following measures:
- Utilize moderate-leverage construction debt: we typically finance our construction deals with moderate leverage in the 50%-55% range with full or partial rate hedges as well as extension options, providing significant flexibility and strong downside protection.
- Managing Construction Costs: We work with reputable, local architects and GCs to ensure efficient design, permitting, and a strong subcontractor base to keep the construction on schedule. Furthermore, we sign a Guaranteed Maximum Price (GMP) contract with our GCs and aggressively manage buyouts to minimize cost overruns.
“Nashville’s current growth is unprecedented, and as developers, it’s important to remember the role that we play in creating authentic additions to a growing city. We’re excited to introduce quality, unique housing for new residents and locals as they move to or within the city.”
Nathan Hysmith, principal at HY Ventures.
For all inquires about Standard Assembly please visit the website using the link (here).
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