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.
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Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.