#United States #Dallas #Marriott #NexPoint

NexPoint Diversified Real Estate Trust Completes Major Refinancing Deal

NexPoint Diversified Real Estate Trust (NYSE: NXDT), a publicly traded and diversified real estate investment trust, has successfully completed a refinancing transaction for the Marriott Dallas Uptown. This pivotal deal amounts to an impressive $95 million, marking a significant step in the公司的 financial strategy. The refinancing process involved the collaboration of NXDT with their partner, Alamo Manhattan, demonstrating a strategic move toward enhancing the value of the property located in the Uptown district of Dallas, Texas.

Highlights of the Refinancing

The refinancing package includes $87.5 million in initial loan proceeds, which primarily serves to replace the existing debt burden of the property. An additional provision allows for two future-funded earnout facilities, potentially unlocking access to $7.5 million in extra capital. This financing arrangement was expertly managed by KKR, utilizing its opportunistic real estate credit strategy, thereby not only addressing current financial needs but also facilitating future growth avenues.

As a result of this refinancing, NXDT and Alamo Manhattan expect to realize significant savings in interest expenses, with approximately $19 million in cash proceeds becoming immediately available for use. NXDT’s portion of this profit is estimated to be around $15 million, providing a welcome boost to its operational capacity. Should the future earnout facilities be exercised, an additional projected $6.5 million can be accessed, further solidifying NXDT’s cash position.

“We are thrilled to finalize this refinancing,” commented Matthew McGraner, Chief Investment Officer and Executive Vice President of NXDT. “The completion of this deal not only validates the quality of the Marriott Dallas Uptown asset but also establishes a positive momentum for NXDT as we embark on the year ahead. We foresee continued progress throughout 2025.”

About the Property

The Marriott Dallas Uptown is a 14-story hotel with 255 keys, situated at 3033 Fairmount Street. The Uptown neighborhood is highly desirable, especially among young professionals and business travelers due to its proximity to major business districts. The hotel itself features approximately 13,000 square feet of meeting space along with amenities that include a rooftop pool, a lounge, and a ground-floor restaurant. The property played a crucial role in addressing the Uptown Dallas hospitality market gap, which has predominantly catered to luxury hotels, by providing a more affordable yet quality accommodation option for many visiting business individuals.

NXDT was instrumental in funding the development of this property, which successfully opened its doors in the first quarter of 2021. The hotel enhances the area’s offerings and provides necessary accommodation for the district's bustling professional crowd.

About NexPoint Diversified Real Estate Trust

NexPoint Diversified Real Estate Trust focuses on opportunistic and value-added investments across various sectors in the U.S. The organization’s approach is characterized by a diligent strategy aimed at acquisition, development, and management, ensuring that it remains ahead in a competitive landscape. With operations bolstered by NexPoint Real Estate Advisors X, L.P., NXDT continues to pursue growth opportunities and expand its portfolio. For further details about NXDT and its operations, the public can visit their official website at nxdt.nexpoint.com.