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DALLAS, Jan. 21, 2025 /PRNewswire/ -- NexPoint Diversified Real Estate Trust (NYSE: NXDT) ("NXDT"), a publicly traded diversified real estate investment trust, and its partner, Alamo Manhattan, today announced the successful refinancing of the Marriot Dallas Uptown ("the Property"), a 255-key hotel located in the Uptown submarket of Dallas, Texas.
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," said Matthew McGraner, NXDT Chief Investment Officer and Executive Vice President. "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, LLC, is located at 3033 Fairmount Street in Dallas's Uptown neighborhood. The area is known for attracting young professionals and business travelers due to its proximity to the many businesses in Uptown and Downtown. The Property offers approximately 13,000 square feet of meeting space and a range of amenities, including a rooftop pool, lounge, and ground-floor restaurant. The Property filled a void in the Uptown Dallas hospitality market, which had a high concentration of five-star, luxury hotels, yet lacked an affordable and quality hotel for the neighborhood's many business travelers. NXDT provided funding to develop the Property, which opened in the first quarter of 2021.
About NexPoint Diversified Real Estate Trust
NexPoint Diversified Real Estate Trust is an externally advised, publicly traded, diversified real estate investment trust (REIT) focused on the acquisition, development, and management of opportunistic and value-add investments throughout the United States across multiple sectors where NexPoint and its affiliates have operational expertise. NXDT is externally advised by NexPoint Real Estate Advisors X, L.P. For more information, please visit nxdt.nexpoint.com.