NexPoint Diversified Real Estate Trust (NXDT) and its partner, Alamo Manhattan, have secured a new $95 million financing deal for the Marriott Dallas Uptown hotel. The funding includes an initial loan of $87.5 million to replace existing debt and two future-funded earnout facilities that could provide an additional $7.5 million in capital. KKR provided the financing through its opportunistic real estate credit strategy.
This transaction will result in significant interest expense savings and generate approximately $19 million in cash proceeds for NXDT and Alamo Manhattan combined, with NXDT’s share being around $15 million.
The 14-story hotel is primarily owned by NXDT through AM Uptown Hotel LLC and is located at 3033 Fairmount Street in Dallas’s popular Uptown neighborhood. It boasts over 13,000 square feet of meeting space as well as various amenities such as a rooftop pool, lounge area, and ground-floor restaurant. The Property was developed with funding from NXDT and opened earlier this year.
