$43M Refi for Texas’ Hilton DFW
- Aug 22, 2011
August 22, 2011
By Nicholas Ziegler, News Editor
There are even more signs of life in the hospitality sector. Coming hot on the heels of some major deals — the nearly $1 billion Pebblebrook and Denihan joint venture in New York City and the $69 million purchase of the Fairmont Dallas — Holliday Fenoglio Fowler, L.P., was able to secure $43 million in financing for the Hilton DFW Lakes in Grapevine, Texas.
The borrower, Somera Capital Management, L.L.C., along with affiliates of Zelman Development Co. and Quorum Hotels & Resorts, obtained the adjustable-rate loan through Cornerstone Real Estate Advisers. “This was a great deal,” HFF director John Bourret told Commercial Property Executive. “We were able to refinance a maturing CMBS loan that originated in 2006 with Cornerstone, a division of Mass Mutual,” for a five-year term.”
The hotel property, located near the Dallas-Ft. Worth DFW Airport, features two nine-story guest-room towers and features a conference center certified by the International Association of Conference Centers, the only facility in north Texas to have such a distinction. With a business driven in large part by groups and events, the hotel’s increase in performance lately points to the booming Texas economy.
“Dallas and Texas have led the country in jobs creation and jobs growth,” Bourret said. “We’re behind only Manhattan as a center of Fortune 500 business headquarters.”