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.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are subject to risks and uncertainties. In particular,
statements relating to the availability and exercise of, and
proceeds from, the two future-funded earnout facilities, the
significant savings and benefits of the refinancing and the
expected continuation of positive momentum throughout 2025 contain
forward-looking statements. We caution investors that any
forward-looking statements presented in this press release are
based on management's current beliefs and assumptions made by, and
information currently available to, management. When used, the
words "will," "potential," and "expect," the negative version of
these words and similar expressions that do not relate solely to
historical matters are intended to identify forward-looking
statements. You can also identify forward-looking statements by
discussions of strategy, plans or intentions.
Forward-looking statements are subject to risks, uncertainties
and assumptions and may be affected by known and unknown risks,
trends, uncertainties and factors that are beyond our control as
described in greater detail in our filings with the Securities and
Exchange Commission (the "SEC"), particularly those described in
our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those anticipated, estimated or projected. We
caution you therefore against relying on any of these
forward-looking statements and encourage you to review our other
filings with the SEC for a more complete discussion of risks and
other factors that could affect any forward-looking statement.
CONTACTS
Investor Relations
Kristen (Thomas) Griffith
ir@nexpoint.com
Media Relations
comms@nexpoint.com
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SOURCE NexPoint Diversified Real Estate Trust
