KSL, Madison Realty Capital Deploy $400M for Nashville Hotel-Condo Project

Tidal Real Estate Partners has landed $400 million of construction financing to build a hotel and condominium development in Nashville, Commercial Observer has learned.

Madison Realty Capital provided a $265 million senior construction loan and KSL Capital supplied mezzanine debt through Tidal’s Flank GP Fund I to build The Nashville Edition Hotel & Residences in the city’s Gulch neighborhood. The capital stack also involved equity from KSL and Tidal. 

Tidal is developing the 261-room hotel project, which also includes 84 condos, in partnership with Left Lane Development and in collaboration with Marriott International. 

“Following our strong initial sales reception, this construction capitalization marks a major milestone that reflects the continued strength of Nashville’s luxury real estate and hospitality markets, as well as the confidence of our capital partners in the city’s long-term growth,” Mick Walsdorf, CEO of Tidal Real Estate Partners, said in a statement. 

Walker & Dunlop arranged the transaction with a team consisting of Keith Kurland, Jonathan Schwartz, Aaron Appel, Dustin Stolly, Jay Morrow, Sean Reimer and Adam Schwartz.

Dan Rohan, partner and head of tactical opportunities at KSL, said in a statement that Nashville has emerged as “one of the most exciting luxury hospitality markets in the country” and that the project will be “a defining addition to that landscape.”

Condos at The Nashville Edition will range from one- to four-bedrooms with prices starting at $1.65 million Forbes reported in June. Community amenities will include a fitness center, a golf simulator and multiple lounge areas.

“We are pleased to support Tidal Real Estate Partners in bringing the Edition brand to Nashville, a market that continues to see extraordinary growth in both hospitality and residential demand,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said in a statement. “The Nashville Edition is the type of design-forward, experiential project that elevates an entire neighborhood.” 

Madison Realty Capital has been heavily invested in the lodging sector since launching a hospitality platform in 2021 with Newbond Holdings.

Neil Luthra, founding partner at Newbond, said in a statement that “Nashville continues to establish itself as one of the country’s most dynamic hospitality markets with the Nashville Edition representing “the level of best-in-class development we are committed to supporting.”

Andrew Coen can be reached at acoen@commercialobserver.com.