WESTLAKE VILLAGE, CA - Knighthead Funding LLC (“Knighthead”) has provided a joint venture led by local development firm CA South with $22 million in first mortgage loans to refinance The Luna, a recently completed 108-unit multifamily community in Nashville, TN.
The loan proceeds from Knighthead’s two-year, fixed rate, interest-only financing will be used to take out the maturing construction loan on the property and allow for continued stabilization. The Luna has exhibited strong leasing velocity since it was completed in 2023.
The Luna is located at 1009 8th Avenue South in the popular Edgehill neighborhood, two miles south of Downtown Nashville. The highly amenitized property attracts residents seeking direct access to the approximately 78,000 jobs and the rich entertainment environment in downtown Nashville.
This is Knighthead’s fifth loan with CA South, a vertically integrated real estate firm that has successfully brought to the Nashville market approximately 500 residential units, 852,000 square feet of industrial and 78,000 square feet of office space since its founding in 2016.
“CA South is a repeat borrower with a substantial history of success both in this product type and submarket,” said Peter Illuzzi, who led the Knighthead origination team. “We expect CA South to successfully execute the business plan on The Luna as it has done with all their other projects we have financed.”
Nashville’s population of more than 2 million makes it the largest metropolitan area in a five-state region. It is home to corporate headquarters for industry giants like Nissan North America, Bridgestone Americas, Mitsubishi Motors North America, Tractor Supply Company, and iHeartMedia. Recently, Oracle announced its plan to move its headquarters to the Music City, citing that Nashville “ticked all the boxes” for Big Red’s employees.
“The Nashville market is positioned for long term growth, fueled by the market’s sustained population and many corporations’ continued desire for a presence in the market,” added Knighthead Principal Jonathan Daniel. “With an ongoing need for quality housing in the market, combined with the strength of sponsorship, this property is poised for prolonged success.