Loan Just South of $100M Goes to Renaissance Dallas
Three 10-year first mortgage loans totaling more than $130 million have been funded by 3650 REIT to refinance hotels including $90 million to sponsors Sam and Daniel Moon for the Renaissance Dallas at Legacy West.
PLANO, TX—Three 10-year first mortgage loans totaling more than $130 million have been funded by 3650 REIT to refinance properties occupied by major hospitality brands. These loans include $90 million to sponsors Sam and Daniel Moon for the Renaissance Dallas at Plano Legacy West located at 6007 Legacy Dr. in Plano, TX; $20.5 million to sponsor David J. Kenny for the Courtyard by Marriott Lake George located at 365 Canada St. in Lake George, NY; and $20 million to sponsor Naman Hotels for the Hilton Garden Inn Charlotte Waverly located at 7415 Waverly Walk Ave. in Charlotte.
“Our three recent hospitality loans will ensure enhanced and prolonged value for these strong, flagship institutions, whose hotels are well-positioned to serve prime business and leisure markets across the United States,” said 3650 REIT co-founder and managing partner Toby Cobb. “These loans reflect the substantial progress we have made throughout 2019. Not only have we facilitated a healthy pipeline of opportunities, but at the end of the second quarter, our 2019 originations have already surpassed the $600 million milestone. By focusing on the perspective of high-quality sponsors, we have proven that our differentiated business model is aligned with the needs of the borrower community.”
The Renaissance Dallas at Plano was built in 2017 and is centrally located in the Legacy West development, which includes 600,000-plus square feet of retail and office space as well as more than 1,000 residential units. The property was developed simultaneously with the rest of Legacy West and has recorded significant demand, attracting retail brands such as Coach, West Elm, Starbucks Reserve and Tesla, and office tenants including Toyota Motor North America, Liberty Mutual Insurance, JP Morgan Chase & Co. and NTT Data.
The Renaissance Dallas at Plano Legacy West is the only full-service hotel located in the southwest quadrant of the intersection of the Dallas North and Sam Rayburn communities. Sponsors Sam and Daniel Moon have extensive expertise developing and owning properties in the Dallas Metropolitan Statistical Area.
“Dallas is attractive to investors because of its great employment opportunities, low cost of living and no state income taxes,” Cobb tells GlobeSt.com. “While the pace of growth is expected to slow modestly, the economic fundamentals of the Texas economy are still strong and will continue to provide investors opportunities to invest in hospitality throughout North Texas. It is not too hot yet.”
The Dallas hotel market remained stable in 2018, adding more than 3,400 new rooms to the market as the demand for hotels in Dallas remained higher than the national average, according to CBRE Hotels research. Despite the high hotel supply, experts predict the market will remain healthy during the next two years.
Built in 2016, the six-story Courtyard by Marriott Lake George encompasses 63 rooms and 56 suites, incorporating views of the lake as well as close proximity to nightlife, restaurants, shopping, beaches and marinas. Sponsor David J. Kenny is a Lake George local and well-established hospitality owner, operating nearly 850 rooms and historically contributing to the area’s growth and development.
A long-term franchise agreement with Marriott along with Lake George’s desirability to tourists and access to a variety of recreational, leisure and water activities, and the Adirondack Mountains ensure the asset will continue to entice leisure and group travel guests.
The eight-story 141-room Hilton Garden Inn Charlotte Waverly opened in April 2018 and involves a long-term franchise agreement with Hilton. It is part of the Waverly mixed-use community, which also features office space, single-family homes, residential units, restaurants and retail establishments such as Whole Foods, Life Time Fitness and Harris Teeter. The hotel’s proximity to parks, trails and wedding venues make it desirable for both tourists and business travelers. Sponsor Naman Hotels is an experienced and well-capitalized owner, operator and manager of 20 hotels and 2,200 rooms across the southeastern United States.
3650 REIT is a balance-sheet lender focused on creating long-term relationships by originating, servicing and asset managing long- and short-term fixed-rate commercial real estate loans through maturity.