A well-known credit rating service has reported that the Ritz Carlton Dallas and the Hotel Crescent Court properties have received over $300 million in loans. DBRS Morningstar reports the two hotels will use the proceeds to retire $268 million of existing debt, return $13.2 million of equity to the sponsor, Crescent Real Estate, as well as other incidental costs. The first mortgage loan is a two-year floating-rate interest-only mortgage loan with three one-year extension options. The collateral for the transaction includes the borrowers’ fee-simple and leasehold interests in the Ritz-Carlton Dallas and The Hotel Crescent Court properties, 

The Ritz-Carlton and the Crescent are adjacent to each other. The Ritz-Carlton has 218 keys, and the Crescent, 226 rooms. The Ritz is in the process of completing a nearly $100,000 per room renovation. DBRS Morningstar believes the significant capital invested into the portfolio, the ongoing renovations, as well as continued near-term investment should support the portfolio’s financial performance.

Connect Texas Multifamily 2023 will take place on Aug. 22, 2023 at Virgin Hotel in Dallas. Click here for more information and to register.