Developer of Nashville Edition Lands $400M in Financing

The Nashville edition of a well-known hospitality brand is a step closer to fruition thanks to a big pile of debt.

New York-based Tidal Real Estate Partners scored $400 million in financing for development of the Nashville Edition Hotel & Residences, the Commercial Observer reported. The construction financing supports the 261-room hotel and 84-unit condominium set to rise in the city’s Gulch neighborhood.

Madison Realty Capital and Newbond Holdings, both based in New York stepped in with a $265 million senior construction loan, while Denver-based KSL Capital filled the gap with mezzanine financing.

“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,” Tidal CEO Mick Walsdorf said in a statement.

A Walker & Dunlop team including Keith Kurland, Jonathan Schwartz and Aaron Appel arranged the debt.

Tidal is collaborating with Left Lane Development and Marriott International on the Edition project. Condo prices are expected to start above $1.6 million, featuring one- to four-bedroom units. Amenities will include a fitness center, a golf simulator and lounge areas.

The Edition is a brand with sites scattered throughout the world.

Two months ago, Kam Sang Company snapped up the Edition Clocktower Hotel at 5 Madison Avenue in New York from the Abu Dhabi Investment Authority for about $250 million, or more than $800,000 per key.

That made it one of the highest price-per-key purchases for a New York City hotel in the past two years, though it still represented a steep drop from the $337 million the sovereign wealth fund paid when it bought the hotel from Marriott International in 2015 as part of an $815 million purchase of three Edition hotels.

Just this week, an affiliate of Madison Realty landed a $285 million bridge loan for Greenpoint Central, a 473-unit multifamily property at 65 and 75 Dupont Street in Brooklyn, according to Bisnow.

This year, meanwhile, KSL and Columbia Pacific refinanced Fred Ohebshalom’s Fifth Avenue Hotel in New York, which Madison Realty was seeking to foreclose.— Holden Walter-Warner