Giant mall landlord Simon Property Group is developing a ground-up, mixed-use project that will include retailers, restaurants and an upscale hotel in Nashville, Tennessee.
Indianapolis-based Simon officially unveiled its plans for Sagefield, slated for a 100-acre site, on Tuesday. The real estate investment trust is partnering with Nashville-based Adventurous Journeys Capital Partners on the project. And Arizona restaurant-and-hospitality veteran Sam Fox will be opening a signature hotel at the complex.
Simon's undertaking is somewhat unusual in that ground-up U.S. retail development has slowed down dramatically, almost to a standstill.
The REIT described Sagefield as a lifestyle destination in Williamson County that will offer "a curated blend of bespoke retail, culinary artistry and design excellence" to Nashville.
It is slated to "feature first-to-market boutiques and iconic brands, creative farm-to-table restaurants and cafes, an organic market, thriving entertainment venues, energizing health and wellness concepts, and inviting outdoor spaces," according to Simon.
Pedestrian-centered Sagefield "will have green spaces covering roughly 60% of the property, ambling walkways, nature trails, water features, and architecture that embraces the organic feel of the area's natural surroundings," according to Simon.
David Simon, chairman and CEO of Simon Property, alluded to the Nashville project during a third-quarter earnings call on Monday. He also referenced the fact that the REIT has just gained ownership of another property in Nashville, The Mall at Green Hills, via its purchase of the remaining 12% of Taubman Realty Group that it didn't own.
Simon will be collaborating with Fox through his company Author & Edit Hospitality for a luxury hotel at Sagefield. That hospitality property will offer "signature restaurants, a world-class spa, a sports and social members club, and sophisticated amenities," according to the REIT.
Fox, a 12-time James Beard Award nominee, founded and built-up Fox Restaurant Concepts, launching over 170 eateries. His new company, Author & Edit, is focused on upscale hotels. Its collection now includes The Global Ambassador hotel in Phoenix and The Twelve Thirty Club, a supper club, at Fifth + Broadway in Nashville.
Eric Sadi, co-president of North American Real Estate at Simon, in a statement said that Sagefield "will set a new standard for quiet luxury in metro Nashville and beyond."
U.S. retail development has significantly slowed in mature markets after years of overbuilding and now often entails tearing down outdated enclosed malls or reimagining them as mixed-use centers, industry professionals have said.
“Elevated construction and financing costs continue to weigh heavily on retail construction activity across the U.S.,” a CoStar analysis said in September. “As a result, retail construction activity is expected to remain well below historical norms for at least the next several years.”