New owner plans to convert Old Spaghetti Factory building into short-term rentals

NASHVILLE, Tenn. (WKRN) — A building that many long-time Nashvillians came to love has a new owner and a new future on its horizon.

Previously home to the Old Spaghetti Factory, the building at 160 Second Avenue North is expected to be transformed into more than 50 residential condominiums, each of which can be used as short-term rental units, by 2026.

On Monday, Aug. 19, T2 Capital Management, a private equity real estate investment firm, announced that it had purchased the vacant, 50,000 square foot building. The purchase comes just about a month after the Metro Nashville Council approved a resolution to allow 55 short-term rental units at the site .

“This is going to bring tourists to a re-developed Second Avenue and they’re going to walk out their front door and they’re going to enjoy the shops and restaurants that are right there and they’re going to spend their hard-earned vacation money,” said Metro Councilman Jacob Kupin.

According to Kupin, affordable housing and permanent residences were considered, but weren’t found to be as cost effective because of the extent of structural damage to the building.

The building was home to the Old Spaghetti Factory for nearly 40 years, but the restaurant’s lease was terminated after the 2020 Christmas Day bombing . In a statement provided to News 2 last month, a spokesperson for the restaurant said they were “disappointed” by the landlord’s decision to not renew the lease but hope to return to the Nashville area one day.

At the time of the bombing, the Old Spaghetti Factory employed 56 people, some of whom had worked for the restaurant for more than 20 years. The blast caused an estimated $1 million in damages to the building , with several antiques and collectibles lost. Many of those collectibles, including a grand piano and multiple crystal chandeliers, came from old churches and venues across Music City.

In a release regarding their purchase of the property, T2 Capital Management acknowledged the importance of the beloved building and highlighted their plans for its future.

“This property is immensely important to not only the T2 team but the city of Nashville,” said Tom Lowe, Director of Acquisitions at T2 Capital Management. “Following the tragic events of 2020, we feel privileged to be restoring the 160 Lofts property and playing a central role in revitalizing such a storied and important part of downtown Nashville.”

In addition to restoring and converting the building into short-term rental units, the firm plans to reactivate the 10,000 square foot Second Avenue retail space on the ground floor. Upon completion, the property is anticipated to consist of six floors totaling 70,000 square feet.

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An existing underground parking structure with 19 stalls is also intended to remain intact and be available to condominium buyers. The firm is aiming to start renovations in mid-2025, with the entire project expected to be completed by 2026.

Headquartered in Illinois, T2 Capital Management has invested in multiple projects throughout Nashville totaling more than $100 million in value. According to the release, the firm’s newest project on Second Avenue was advanced in “strong coordination” the Metro Council and Mayor’s Office.

“Nashville has been a welcome home to T2 for many years and it’s an honor to be playing a role in rebuilding such a significant property in the heart of Music City,” said Jeff Brown, Founder and CEO of T2 Capital Management. “Given Nashville’s persistent growth and the prime location of the 160 Lofts project, as a leading commercial real estate investor, we believe T2 is well positioned to shepherd this project and help activate Second Avenue into an integral part of downtown.”

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