A Dallas-based REIT secured fresh financing for its Marriott outpost in Dallas’ popular Uptown neighborhood.
New York-based private equity firm KKR loaned NexPoint Diversified Real Estate Trust $95 million for the 255-key hotel, according to a release from the REIT. The loan amounts to $373,000 per key.
The proceeds will be used to replace $87.5 million of the property’s outstanding debt. The deal will also generate $15 million in cash for the REIT, it said in the release.
Marriott Dallas Uptown, at 3033 Fairmount Street, opened in 2021. Dallas-based developer Alamo Manhattan developed the property, with funding from NexPoint.
The 14-story property is steps from the Katy Trail and features a rooftop pool that overlooks downtown Dallas. It also includes 13,000 square feet of meeting space.
Uptown has become headquarters for “Y’all Street,” a nickname for Dallas’ emerging prominence in the financial world.
Firms located in Dallas have been fleeing dated downtown digs for flashy Uptown towers since the Klyde Warren Park was built in 2012 to connect the two areas.
There’s more than $1 billion of development in Uptown’s pipeline, including Hunt Realty’s $500 million campus for Goldman Sachs and Parkside Uptown, a 30-story project that will be home to Bank of America.
Despite an influx of new supply, Dallas’ hospitality market remains solid.
The Metroplex added 9,000 hotel rooms since 2019, but average daily rates have recovered from the pandemic and are up 11 percent in the same time period, Hotel Management reported, citing data from CoStar.
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