NexPoint Diversified Real Estate Trust, a publicly traded diversified real estate investment trust, and its partner, Alamo Manhattan, refinanced the Marriott Dallas Uptown, a 255-key hotel in the Uptown submarket of Dallas.
The new $95 million financing includes $87.5 million in initial loan proceeds used to replace the property's outstanding debt, as well as two future-funded earnout facilities that provide potential to access $7.5 million in additional capital. The financing was provided by KKR via its opportunistic real estate credit strategy.
The transaction provides significant interest expense savings and results in approximately $19 million in cash proceeds for NXDT and Alamo Manhattan collectively. NXDT's share of these proceeds is roughly $15 million. Additionally, if exercised, the $7.5 million of earnout facilities provide NXDT with the potential to access approximately $6.5 million in cash proceeds on future draws.
"We are pleased to complete this refinancing, which brings significant benefits to both NXDT and the Property," Matthew McGraner, NXDT chief investment officer and executive vice president, said in a statement. "It affirms the quality of the asset and builds positive momentum for NXDT to start the year, which we expect to continue throughout 2025."
The 14-story hotel, majority owned by NXDT through AM Uptown Hotel, has approximately 13,000 square feet of meeting space, a rooftop pool, a lounge and a ground-floor restaurant. NXDT provided funding to develop the property, which opened in the first quarter of 2021.