Driftwood Capital has provided $30 million in mezzanine financing for the refinancing of the Sheraton Dallas Hotel in Texas.
Located at 400 Olive Street in Dallas, the 1,841-key hotel also has five onsite restaurants, 113 meeting rooms, and 1,100 parking spaces.
The mezzanine financing for the hotel will accompany a $270 million senior loan originated by Goldman Sachs and JP Morgan Securities. The two-year, floating-rate loan includes three one-year extension options.
Driftwood recently said its hotel development pipeline has exceeded $1 billion in projected value. Its development portfolio includes $800 million projects either under construction or scheduled to break ground in 2024 namely the $54 million Element by Westin Melbourne Florida, the $74 million Element by Westin Mission Valley San Diego, the $410 million luxury Westin Resort & Spa Cocoa Beach Florida and a $267 million Riverside Wharf Miami mixed-use development.
What they said
Carlos Rodriguez, chair & CEO of Driftwood Capital said: As demand for full-service hotels and dynamic meeting spaces elevates, owner/operators continue to seek favorable loan terms to capitalize on this trend with longer holding periods. The addition of this mezzanine loan also speaks to the need for gap financing that allows firms to continue their investment strategies while allowing us to provide continuity to the hotel industry.