Dunhill JV Buys Dallas Luxury Hotel
- Nov 07, 2019
Estein USA has sold the 252-key W Dallas Victory Hotel to a joint venture between HN Capital Partners and Dunhill Partners. JLL, which represented the seller, secured $80.3 million in acquisition financing from Starwood Property Trust for the buyer. The three-year, floating-rate loan includes three one-year extension options.
Located in Dallas’ Victory Park at 2440 Victory Park Lane, the hotel is on 1.7 acres in the live-work-play neighborhood which is home to 5,700 residents, 2.6 million square feet of Class A office space, a vibrant restaurant district and a number of entertainment venues. The W is next to the American Airlines Center, a 21,000-seat arena home to the Dallas Mavericks and Stars.
The 33-story luxury hotel offers guest amenities including lobby and terrace bars, an infinity pool on the 16th floor, a ground-floor American gastropub and 10,800 square feet of meeting and event space. The high-rise also has residential condos on floors 18 to 32 and street-level retail units which were not part of the transaction.
JLL Capital Markets’ Michael Kavanau and Parker Sherrill represented Estein in the deal, while De’On Collins with the firm’s debt placement team worked with Randy Fleisher from Hamilton Realty Finance to secure the loan. The deal originated from HFF prior to JLL’s $1.8 billion acquisition of the brokerage in July.
In May, Estein USA sold a portfolio of nearly 422,000 square feet of retail and office space in Victory Park to Asana Partners. The firm previously also had an ownership stake in Hines’ 436,049-square-foot One Victory Park , two blocks south of the W.
An elevated experience
According to Vipin Nambiar, HN Capital’s founder & managing partner, the joint ownership is looking to revitalize the 2004-built Dallas hotel. Plans include a complete renovation of the W’s guestrooms and lobby and the introduction of new food and beverage operators.
“As a firm, HN Capital believes in the long-term demographic trends of Dallas and the densification of its urban core,” Nambiar told Commercial Property Executive. “This asset fits well in that theme, and our goal is to have it elevate the pedestrian experience in Victory.”
The two partners are also working on another hotel, Virgin Hotel Dallas, which is expected to open by the end of the year. The development will add 200 guestrooms a mile northwest of the W.