**Driftwood Capital Provides $35M Mezzanine Financing for Texas’s Largest Hotel**
Driftwood Capital, through its lending fund Driftwood Lending Partners, LP, has provided $35 million in mezzanine financing for the refinancing of the Sheraton Dallas Hotel. With 1,841 rooms, it stands as Texas’s largest hotel. The financing is part of a broader refinancing transaction led by a joint venture sponsored by the Chartres Lodging Group.
The transaction entails the complete replacement of a $270 million CMBS loan due in 2024 with a new $300 million senior loan originated by Goldman Sachs and JPMorgan Chase Bank. As part of the refinancing, Driftwood increased its original mezzanine loan from $30 million to $35 million. The new facility is structured as a two-year loan with three one-year extension options.
Originally built in 1959, the Sheraton Dallas features over 230,000 square feet of meeting and pre-function space, five on-site restaurants, 113 meeting rooms, and 1,100 parking spaces. The hotel offers a comprehensive suite of full-service amenities and continues to be a key hospitality asset in the region.
