AEG Eyes Nashville Yards Development for Two Music Venues

Last Thursday, San Diego real estate group Southwest Value Partners began to release information about Nashville Yards, a substantial multi-building development in the middle of downtown. According to my colleague William Williams over at Nashville Post, the project, which is set to unfold in phases on the 15-acre campus between Broadway and Church Street that was formerly home to LifeWay Christian Resources, "might be the single-most significant redevelopment of a privately owned property in the history of the city’s central business district." Groundbreaking may begin on the first phase as early as January 2018.

Over the weekend, more specific details emerged about plans for the property, including one likely to affect local concert and touring business. A four-acre parcel has been purchased (with an option to buy 1.5 more acres) by entertainment giant AEG for its latest "entertainment district" complex. Previous examples of AEG entertainment districts include Los Angeles' L.A. LIVE (which, in addition to AEG's corporate offices, features the Staples Center arena, Microsoft Theater and Novo by Microsoft, plus a 14-screen Regal Cinemas movie theater, hotels and restaurants) and London's O2 complex (including the O2 arena, the indigO2, the British Music Experience museum and more).

According to a release, the as-yet-unnamed Nashville entertainment district will be anchored by a 4,000-seat venue, alongside a luxury-oriented Regal Cinemas multiplex, a boutique hotel with some 240 rooms, and a smaller entertainment venue with a capacity of 600-700. In terms of how it's divided up, the plan is similar to another AEG entertainment district property: the Mercedes-Benz Platz currently under construction in Berlin.

The 4,000-cap venue slides into a niche between spaces like the Ryman Auditorium (2,362 seats), TPAC's Andrew Jackson Hall (2,472) and War Memorial Auditorium (2,044) and bigger venues like Ascend Amphitheater (6,800), Municipal Auditorium (9,700) and First Tennessee Park (10,000) which is set to host its first standalone concert when Kings of Leon play on Sept. 29. The 600-cap room would be in closer competition with Mercy Lounge (whose capacity is 500), Exit/In (500) and The Basement East (400). 

AEG's international portfolio of venues includes 42 arenas and more than 30 theaters and auditoriums, with properties like San Francisco's Warfield Theatre and L.A.'s Shrine Auditorium. The company has a history of partnering with local promoters on club shows in Nashville, though you might know AEG best by its artist clientele, as it promotes tours and events for Kanye West, Taylor Swift, Katy Perry, Justin Beiber and Paul McCartney, among dozens of others. AEG is also the major player behind Coachella (through its subsidiary Goldenvoice) and the New Orleans Jazz and Heritage Festival (through Festival Productions Inc.). 

For a little deeper background, it's worth noting that billionaire Philip Anschutz is the "A" in "AEG," short for Anschutz Entertainment Group. Earlier this year, there was a flurry of reporting on contributions from Anschutz's foundation to conservative groups that espouse anti-LGBT sentiments and deny climate change. In a statement, Anschutz denied that he supported those views, and as soon as he found out what the organizations stood for, he discontinued his donations. Anschutz does have close ties to Neil Gorsuch, the newly appointed Supreme Court justice. He also provided financial contributions to Won't Back Down, a feature film with an explicitly pro-charter-schools message.

Zach Gilchriest contributed to this report.